Pricing Strategies That Actually Work

Promotional Pricing

Create a sense of urgency by using promotional pricing and making certain offers available at least once or twice a year. Run a buy one get one free promotion and give away vouchers. Influence buying decisions by producing coupons and allowing your customers to get a discount on the next purchase. This will raise interest and keep them coming back.

Run a promotional campaign across social media platforms to reach your audience. Use flyers or posters to reach more people and boost sales. Advertise to past clients, existing customers, friends, as well as coworkers. Ask them to check out your new product and tell their friends about it. This is a great way to quickly get more customers and turn them into loyal consumers. Past clients can help you raise brand awareness and get more people involved. So, ask happy customers for reviews, referrals, and recommendations. They can leave comments and ratings on your business pages or blog. This is an easy way to prove credibility as well as the quality of your product. It is the best way to attract prospects to your business.

Know the existing market rate and slash product prices where you can. For example, if a competitor charges $50 for certain goods, offer them to your customers at half the price or a 20% discount. Remember, to provide the same quality and value as the competitor. You want clients to know they can have their needs met at a lower price and get the same value as the competitor’s high-paying customers.

However, be sure to only offer discounts occasionally. Especially when it comes to products or services with high market rates. You want more sales but you also need to grow your business and keep it running. So, know when to offer discounts, at what percentage, and how often.

Use freemium pricing to attract customers, help them familiarize themselves with your product, and build trust. For example, if you own a software company and have recently launched a new app, create a free trial version and offer it to prospects. Give them a 14-day or 30-day trial. Include at least 2 unique and interesting features to keep them interested and looking forward to accessing additional features.

Encourage them to upgrade to the paid version by creating different packages. Start at a lower price and raise the costs as you go. Add more features and benefits with each package and pay special attention to the one you want them to purchase. For example, you can have a ‘Basic plan’, ‘Essential’, and ‘Professional.’ Focus on the ‘Essential plan’ and include all the important features. Make sure the essential plan looks more affordable when compared to the professional plan. Add extra benefits and set the price right.

You can also use dynamic pricing and price your products depending on external factors such as consumer demand. The higher the demand the higher your charges and vice versa. Do your research. Know when the customer is willing to spend more money and use that to your advantage. Offer your product or service at the right time. Be flexible with your strategy and change prices based on customer and market demand.