Does Psychological Pricing Work?

psychological_pricing

Psychological pricing is a strategy in which retailers appeal to a consumer’s subconscious, unknowingly persuading them to buy. While this isn’t the first time that retailers have heard about psychological pricing, it hasn’t gotten any less effective. It’s a pricing strategy that can be utilized by all merchants, whether they sell online, in-store or both. Gone in a Flash Increase sales at the speed of Flash Ever gotten one of those email blasts telling you that the best sale is…

Read More
2
Share

How Online Retailers Can Fight the Rise of Webrooming

Showrooming used to be a common complaint for brick-and-mortar retailers, but now the tides are changing. Webrooming has become more prevalent and the fact that 56% of adults own a smartphone is exacerbating the problem for online retailers. Before we get too deep into webrooming, let’s define it. It is when shoppers research products online, but decide to buy them in a physical store instead. This is stealing money out of online retailers’ pockets and it’s increasing. Webrooming is now…

Read More
3
Share

5 Ways to Boost Sales with Psychological Pricing

Psychological pricing is a pricing strategy that plays into the way our brains work without us even realizing. Have you ever noticed that many prices have 9s in them? It’s not a coincidence. I will go into each of the 5 psychological strategies here and below you’ll find the full infographic, Leveraging Psychological Pricing to Boost Sales. 1. Charm Pricing 9 is what some call a charm number because shoppers love it. It’s been proven to make them more likely…

Read More
2
Share

5 Ways to Boost Profit Margins

Profit margins are essential for the survival of any business, but is your pricing strategy optimized for profit? Improving margins is the top opportunity for pricing to contribute to retailers’ overall business strategy in the next two years, according to a recent survey. There’s a lot of room for growth because when retailers were asked how effective their pricing strategies were at driving top and bottom line results, only 27% said they were very effective, 62% somewhat effective, and 11%…

Read More
2
Share

Dynamic Pricing and Buyer Psychological Pricing

We previously discussed why dynamic pricing can be a powerful strategy for retailers to optimize revenue and profit.  With the rise of pricing intelligence and repricing tools, they can now quickly and accurately reprice inventory based on repricing rules that take into account  key profitability points.  Let’s take a closer look at why dynamic pricing works in terms of psychological pricing – in particular, how the contrast effect plays into it.

Read More
1
Share