Psychological pricing the Apple way
Buyers will flock to every product release making them the first company ever to be worth $1 trillion.
- Offer a small number of products
- Focus on high end products and consumers
- Give priority to profits over market share
- Create a halo effect that makes people starve for new Apple products
The left digit effect helps you sell more
There’s a reason why businesses like Apple will price a laptop at $1299.99 and not a flat $1300. That $0.01 actually makes a surprising difference in the amount of sales that can be made. Consider using two different price points—one with odd pricing, and another with flat pricing to test which one works for you.
If a product is expensive, it must be good
Apple pricing strategy. Consumers equate price with quality.
Tips to develop an ecommerce pricing strategy
Large online retailers like Amazon have an advantage in competitive pricing, as they can set the price low enough to run smaller retailers out of business. Other ways to compete: an ecommerce pricing strategy.
- Know your margins
Do not price too low.
- Know your unique selling proposition (USP)
For online retailers, a unique factor could be excellent customer service, free or timely S&H, product you can't find anywhere else, appealing to a sense of charity.
- Loss-leader: Selling below market value
Using this strategy, online store owners have the opportunity to upsell, cross sell and increase the total shopping cart value (average revenue per user). Even if the profit is not impressive, this strategy stimulates client acquisition, opening the door for further marketing efforts.
- Offer incentives
Offer incentives to motivate your customers to buy. For example, “Purchase in the next hour and receive 20% off!” OR “Buy one, get one 50% off!” The customer sees the 50% off, but really they are only getting a 25% discount. Try Shopify App Bold Discounts
- Diversify product offerings
To sell a diversity of product, first understand the market demand. Read ecommerce news, use “Google Trends” or “Google Insight”. When in doubt, give your customers multiple options to help them figure out what they want. The end result of proper diversification is offering bad options to emphasize the good, driving customers to act based on perceived value.
- Test your ecommerce pricing strategy
One size does not fit all. Validate every change with an analytics tool. Does the ‘Summer Sale’ convert more or less than the new, trendy products?