The$cience of Pricing
Whats the Best Price for Your Product?
The Right Price Will Make     You Earn Money
The Wrong Price Will Make     You Lose Money
But...
Theres More!
There are SecretPricing Strategies...
...that will Increase Your Sales...
...and Your Earning Per Sale
3 AwesomePricingStrategies
1    Decoy    Pricing
In a study, were offered 3 types ofmagazine subscription to 100 students:web ($59), print ($125), print+web ($125).
No one was taking the print only version,so it was removed and the experiment repeated.
As a result lessprint+web subscription were sold.
Takeaway
Offer different options withsimilar (or almost equal)prices for two of them.
Of the two, one is a decoy, and the other   is the more attractive choice you wish                for the consumer to take.
2    Anchoring
Researchers invited real experts and            undergraduate students        to appraise a home for sale.
The seller listed his house at different pricesand as a result both students and expertsmade different evaluations.
The higher the priced listed,the higher was the evaluation.
Takeaway
Put very expensive productsnear the productthat you want to sell.
3    Bracketing
Tests showed that betweena premium beer ($2,50) and a bargain beer ($1,80)people preferred the premium beer.
Adding a third super bargain beer ($1,60),        people preferred theoriginal bargain beer ($1,80).
Replacing thesuper bargain beer ($1,60) witha super premium beer ($3,40),people preferredthe premium beer ($2,50).
Takeaway
Include three options,and put the one thatyou want peopleto buy in the middle.
Make the luxury option really expensive:                some people will buy it,                    no matter the price.
Want More?
Want More?Read All the7 Studies  [Infographic]
Want More?      Read All the     7     Studies           [Infographic]Click it
Upcoming SlideShare
Loading in …5
×

The Science of Pricing: Pricing Strategies to Increase Sales

51,544 views

Published on

I no longer teach internet marketing, I'm working on other cool stuff:

http://lifestylecheatcodes.com

Photo Credits:
1 - http://www.flickr.com/photos/53921113@N02/5645102295/

2 - http://www.flickr.com/photos/31817493@N08/5225000237/

3 - http://www.flickr.com/photos/93755244@N00/5532389673/

4 - http://www.flickr.com/photos/79649916@N00/5657236729/

5 - http://www.flickr.com/photos/49503180180@N01/5545552367/

7 - http://www.flickr.com/photos/10565597@N00/4828439402/

8 - http://www.flickr.com/photos/32852034@N00/6386019085/

9 - http://www.flickr.com/photos/26406919@N00/451900976/

10 - http://www.flickr.com/photos/41754875@N00/2192051338/

11 - http://www.flickr.com/photos/45820171@N08/7195729556/

12 - http://www.flickr.com/photos/82327812@N00/3852759250/

13 - http://www.flickr.com/photos/51035555243@N01/2681744739/

14 - http://www.flickr.com/photos/35237096015@N01/24604141/

15 - http://www.flickr.com/photos/40193179@N03/3860441854/

16 - http://www.flickr.com/photos/23566085@N00/7039449789/

18 - http://www.flickr.com/photos/43103019@N05/4121668515/

19 - http://www.flickr.com/photos/12836528@N00/4195419849/

20 - http://www.flickr.com/photos/29711987@N00/3353212322/

21 - http://www.flickr.com/photos/49502995517@N01/2857391640/

22 - http://www.flickr.com/photos/38605609@N02/7263046570/

23- http://www.flickr.com/photos/53371251@N08/6840568965/

24 - http://www.flickr.com/photos/74743437@N00/3182134375/

25 - http://www.flickr.com/photos/54341740@N04/6938913587/

26 - http://www.flickr.com/photos/40195741@N00/3842509936/

27 - http://www.flickr.com/photos/52299769@N04/5908989821/

28 - http://www.flickr.com/photos/60906956@N00/4521591623/

29 - http://www.flickr.com/photos/51035555243@N01/3105581280/

31 - http://www.flickr.com/photos/10361931@N06/4273225057/

Published in: Business
12 Comments
111 Likes
Statistics
Notes
  • Great slides! Coming up with a smart, competition-based pricing strategy is one of the fundamental steps you should take to stay at least in the game in 2017. 60% of customers name price as the single biggest reason they shop where they do. Have you got an idea of how competitively priced you are on key items today? Recently I found a super fresh list of the most populat Price Monitoring Tools in 2017 https://mavitech.com/ecommerce-price-monitoring-toolkit/ and I’ll be glad if it helps somebody.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • What is the meaning of Stranger pricing and Alien Pricing
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • @lisapatb Thank you, Lisa!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • @nelsonpricing Gracias!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • @spook Grazie!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
51,544
On SlideShare
0
From Embeds
0
Number of Embeds
8,640
Actions
Shares
0
Downloads
0
Comments
12
Likes
111
Embeds 0
No embeds

No notes for slide

The Science of Pricing: Pricing Strategies to Increase Sales

  1. The$cience of Pricing
  2. Whats the Best Price for Your Product?
  3. The Right Price Will Make You Earn Money
  4. The Wrong Price Will Make You Lose Money
  5. But...
  6. Theres More!
  7. There are SecretPricing Strategies...
  8. ...that will Increase Your Sales...
  9. ...and Your Earning Per Sale
  10. 3 AwesomePricingStrategies
  11. 1 Decoy Pricing
  12. In a study, were offered 3 types ofmagazine subscription to 100 students:web ($59), print ($125), print+web ($125).
  13. No one was taking the print only version,so it was removed and the experiment repeated.
  14. As a result lessprint+web subscription were sold.
  15. Takeaway
  16. Offer different options withsimilar (or almost equal)prices for two of them.
  17. Of the two, one is a decoy, and the other is the more attractive choice you wish for the consumer to take.
  18. 2 Anchoring
  19. Researchers invited real experts and undergraduate students to appraise a home for sale.
  20. The seller listed his house at different pricesand as a result both students and expertsmade different evaluations.
  21. The higher the priced listed,the higher was the evaluation.
  22. Takeaway
  23. Put very expensive productsnear the productthat you want to sell.
  24. 3 Bracketing
  25. Tests showed that betweena premium beer ($2,50) and a bargain beer ($1,80)people preferred the premium beer.
  26. Adding a third super bargain beer ($1,60), people preferred theoriginal bargain beer ($1,80).
  27. Replacing thesuper bargain beer ($1,60) witha super premium beer ($3,40),people preferredthe premium beer ($2,50).
  28. Takeaway
  29. Include three options,and put the one thatyou want peopleto buy in the middle.
  30. Make the luxury option really expensive: some people will buy it, no matter the price.
  31. Want More?
  32. Want More?Read All the7 Studies [Infographic]
  33. Want More? Read All the 7 Studies [Infographic]Click it

×