“A rose by any other name would still smell as sweet,” wrote William Shakespeare, meaning that a person’s name has little bearing on the image they present. It’s a nice concept, but we’ll soon see that it doesn’t apply at all to pricing. It not only matters a great deal what your price is, but also how you present your price. For instance, did you know that the presence or absence of a comma in an item that costs more than a grand has a noticeable effect on the buyer’s mindset?
RepricerExpress takes a look at this, as well as other Amazon pricing strategies, so keep reading to learn what you can use to vault you to the next level on Amazon and your other channels.
How Easily Do Your Prices Roll Off the Tongue?
Just because we like pop quizzes so much, here’s a quick one for you. Of the prices listed below, can you rank them in order of most to least favourable in terms of what customers prefer?
Are you ready for the answer?
They dislike the top one the most because it takes the longest to say—implying they have more time to focus on how much the item actually costs—and like the bottom one the best because it takes the least time to say. The extra syllables in the price, even though each one is the same, makes the product feel more expensive to buyers and is something they’ll shy away from.
Don’t Hit Them All At Once
If you’ve ever gone in to buy a car or house, you know that the sticker price is a hard one to swallow. Few people have the financial means to pay for either with cash in pocket, as each one runs into the tens of thousands.
If you’re selling high-priced items on Amazon, one great pricing strategy you can use is to break up the price so it’s more palatable. For instance, if you’re selling something like an HDTV or MacBook Pro, one way you can put buyers’ minds at ease is to tell them what it’d cost each month. You still have to list the actual price on your Amazon page, but once they get in, letting them know it’ll only be X amount each month makes the final price a lot easier to bear.
How Do Your Prices Grow?
In the first point, we talked about how to break up the syllabicity of your prices so they feel cheaper to buyers, but did you know, regardless of that, it makes a difference of what the last digit is?
Quantitative Marketing and Economics found that if you list your price ending in a “9”, you’ll have much better luck selling it, even if it costs a little more. What’s interesting to note is if you introduce a sale price on your product, then that trumps the “9” ending.
But—and this is where you should be taking notes—if you introduce “9” into the sale price, as in “Usually costs $100 but now on sale for $79”, buyers will react to it more positively than if you listed it for a slightly cheaper price that doesn’t end in a “9”. Just something to consider.
Bundle, Bundle, Bundle
Customers love when they can get certain items for cheaper, but you can always just knock a few dollars off each product and still keep a healthy bottom line. Repricing will help a little with this, but you should still be using other strategies.
One of our personal favourites is bundling, the concept where you little pieces the shopper would normally buy, package it together, and reduce the overall cost as compared to what it’d be if everything was purchased separately.
Have you ever built your own bicycle? If you have, you know that buying the tyres, frame, handlebars, gears, derailleur, brakes and everything else amounts to more than if you’d just purchased the bicycle as an already-assembled unit. This is a more seamless version of bundling, but the idea’s still the same: offer to bundle features together for a lower overall cost, which will make your buyer very happy. You’ll also be very happy, too, because you’ve just sold more items than you initially thought.