This video tells about how we can use the price psychology to make the prices look attractive and make more profit.
Ego PricingIn one of the researches, the researchers tried to match the prices to the birthdates. For example the price was $39 which they had to offer but they made small changes in the prices as per the birth date like if the person was born on April 15th, they made the price $39.15. Upliftroi – This increased the sale by 23%.people were more likely to purchase the products just because it was matching to their birthdates.
The Comma EffectIf you have a comma in the price like if the price is $1342 it can be written in two ways: $1342 or $1,342. Here people consider the number with comma bigger as the number without comma. The researchers have tried this and the conclusion is, we should remove the commas in the prices to enhance the sale.
The Relative Size EffectNow let’s look at a scenario where you want to give discount on your products. The prices were more before and now the prices are less. UX.stackexchange.com – If you want to sell something in $79 dollars which you selling in $100 dollars, how you should be presenting it? Researches tried to write the prices in two ways. They keep prices in the same font and in a smaller font and as a result, when the new decreased price was written in smaller font people were more likely to buy the product.
Consolidate SurchargesLet’s try to understand this also from an example. You have a product to which you need to add the delivery charge and again the tax so there are two kinds of surcharges. So, rather than showing the surcharges separately like $129+8% Tax+ 4% Shipping, it s always better to combine the surcharges with the price like $129 + 12% tax $ shipping. Economictimes.indiatimes.com – The surcharge may look bigger in this case but it is effective and researchers have found it attracts more people than the idea of showing all the surcharges separately.
The Descending Order EffectThere can be two ways to show the prices when you have similar kind of products. In a research, the prices of the beers were put in ascending order for few weeks and the same prices were presented in descending orders.
Beer Name PriceABC $3
Beer Name PriceOPQ $8
It was found that when the prices were kept in descending order, people were more likely to buy the costlier beers. Hence the conclusion is always display your product prices in descending price orders. This trick is very much suitable for any restaurants, bars hotels etc where you need to show the prices of recipes, drinks or rooms. Keep the costlier rooms on top and people will try to avoid the cheaper rooms, which means the sales in multiplication.