Pricing Strategies In Marketing – Tips On How To Price Your Products & Services
In this article Mark Ford looks at pricing strategies in marketing your products and services for your online business.
So it is great that you have decided to start an online business and you have your products and services either in development or ready to go to market. You may also have your website ready but the thing is you may be struggling with how much you should sell them for.
Setting your prices is a crucial step to online success and if you do it right then you can literally write your own paycheck. Do it wrong though then you can cause all sorts of problems in the future.
With that said I want to share with you some pricing strategies in marketing the products and services that you are going to offer to the world.
Pricing Strategies In Marketing – 3 Initial Things to Consider
The first thing you need to work out is how much does it cost to produce your products and services. This relates to the raw cost of materials but you also have to factor into the equation marketing costs and any overheads that your business has.
Secondly you need to consider the market that you are involved with and the competition that you face. Research other companies and look at their pricing structure as a guideline which you can work around.
Finally you need to work out the buying habits of the people who will be interested in what you have to offer. Are they affluent or people who buy at the lower end of the spectrum. If they are at the lower price point then you may find that offering discounts attracts them whereas people with more disposal income are not really interested in discounts as they have no problem paying a higher price.
Pricing Strategies In Marketing – Charm Pricing
This is a psychological marketing strategy. As an example I will use a price point of around $30 and this is about whether you charge a .97 or a .00. Ask yourself which would be the one that you would more likely purchase. Would it be $30.00 or $19.97?
This is what is referred to as charm pricing and it really works. If you go for the latter price you will find that you conversions will increase significantly.
Pricing Strategies In Marketing – An Impulse Purchase Or A Considered Purchase?
Sometimes people buy things on impulse and sometimes it takes them a while to make their mind up. So your product and service has to reflect this and they always have to be high quality but some more than others.
An impulse buy would probably come under the $50 bracket and you will find that people will just buy them without too much thought. Over $50 is when the rational side of their brain takes over and you may find that you need to be more persuasive for them to get their credit cards out.
Also within internet marketing it is very common to offer something for free which takes everything out of the equation and people will sign up for these type of products in their droves. Then you can start to build a relationship with these individuals by offering them immense value and then they will buy from you in the future no matter how much you charge. It’s all about the know, like and trust factor!
Pricing Strategies In Marketing – Use Small Fonts
Again this is another psychological strategy. You will find that using small fonts for your price will improve the number of sales that you make. Nobody likes to feel pressured into buying anything so if you have large prices on your sales pages then you will put a lot of people off.
Pricing Strategies In Marketing – Pronunciation Pricing Strategies
When people look at at price they will pronounce it either out loud or in their heads and it will affect whether they buy or not.
So look at these examples for a moment –
- $ 23.73 ( twenty-three-seventy-three )
- $24.14 ( twenty-four-fourteen)
If you read these out or say them in your head, which is the fastest and easiest one to say? The latter obviously and it will convert so much better.
So as you can see there is a lot to think about when coming up with the perfect pricing strategies in marketing your products and services. I hope that these pricing tips have helped you when it comes to deciding how to price your products and services.
For more high level marketing training you may like to consider the Six Figure Mentors to take your business to a whole new level and you can learn more by clicking here.
Mark Ford – Home Business Lifestyle Consultant, loyally stepping up for others SO THAT they are given inner peace.
Business Website: Nice Money Publications.com
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