▷ 7 trader's tips to make your prices appear smaller 2021 -

Local traders have been around for so long that their expertise in trade is well established and they have all the price tips to offer us. Every day, e-commerce reinvents what has already been discovered for decades while adding something unique all the same : measurement...

Indeed, traditional traders have above all intuitions or “tips” that work for them. But is it reproducible on a large scale as demanded by e-commerce?

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At the end of this article, you will even know how to sell Lajaunie cachous like a pro… (see tips 4 and 7).

When you have built your offers using the AIDA method, just apply these price tips.

You will also be helped in this task by Robert Cialdini, author of Influence and Manipulation

as well as Joule and Beauvois, authors of the Small treatise on manipulation for the use of honest people

1 – Price tip: end with 0.99, 0.80, 0.90… does it work or not?

Aaah the famous psychological price.

All traders use it, but do they know if it really works?

So the client would be so stupid that he wouldn’t see what is after the comma?

A study from the University of Chicago tells us that if the usual reading direction of the people tested was from left to right, then the perception of a price in .99 was related to the figure before.

Customers surveyed felt that 9.99 is closer to 9 than 10!

University of Chicago study on Charm pricing and Prestige pricing

To go further in this price trick, the researchers wanted to see if suddenly the number 9 was psychologically connoted by putting identical dresses on sale in a store.

One at 45 € / $ crossed out price at 60, the other at 49 € / $ crossed out price at 60 € as well.

Result: the 2nd offer, although more expensive, sold more than 24%!

The explanation here is precisely the massive use of .90 / .95 /.99 giving the number 9 the feeling of promo, cheaper.

The simple conclusion is that using the number 9 “promotes” and so using it makes it seem like a lower price.

We call it the “Charm’Pricing” (the charming prize)

Price tip with the 9
This couscous will sell better thanks to its price

Increasing your margin by selling at 9.90 rather than 8 just because you seem cheaper is that stupid.

*

2nd price tip: size matters

It seems not, but in terms of price YES.

a / Anchoring

In psychology, we talk about the anchoring effect or labeling bias to explain how the words used to define someone or something influence the perception that one has of him or her.

So i must advise against here the often encountered use of this kind of phrase: “Big price on …” “Huge price by buying …” “ETC”.

For a price seems small, you have to stick all the cutest superlatives that are: mini, cute, pretty, kiki …

For the older ones, we will remember the Mini Mir – Mini Prix ad, but it does the maximum! Suffice to say that the price trick here is used perfectly.

b / The size of the crossed out price

To sell for a low price, nothing like compare to a bigger one.

Indeed, a customer can only judge quickly by comparison.

The use of the crossed out price is therefore highly recommended, BUT must be done in reverse of the most common practice encountered today.

Usually, we write the crossed out small price to show the new BIGGER price!

The anchoring effect here is misused, because by writing a bigger price it allows it to steal the show from the product and ultimately only shows the discount granted.

It is therefore good practice to write the new small price and the much larger crossed out price.

At the same time, the interest of the promotion granted is highlighted.

c / The counterexample

I introduce here the only counter-example where writing a very large price makes it seem small: the price promotion.

Sometimes, we want to sell a price, the associated product is ultimately only of great importance.

The idea here is to make volume and therefore we will display a huge low price.

Kezako?

Simple, to sell a price, it must be shocking by its smallness for the product it defines.

How about a bottle of champagne for € 3?

Be careful though, playing this game gives a poor quality image of the product, but it is the most used technique when it comes to selling trinkets.

3rd price tip: the prestige price

The notion of prestige price was discovered with the evolution of luxury brands.

Indeed, the number 9 being connoted promotion, discount, cheap, etc.

We should avoid using it for luxury brands or for products for which we do not want price to be the most important concept.

A round price ending in 0 is even considered reliable and giving value (University of Chicago study).

We conclude that for the consumer, a round price allows his purchase to be emotional and therefore to decorrelate it from the price.

Be careful, however, we know that a purchase is never 100% or emotional or rational.

round price tip
The price is not important here, but the sensations are.

4th prize tip: present to the person

This paragraph is dedicated to those who sell to variable quantity.

Sellers per kilo, per hour, per liter, per meter …

These concepts should NOT be the main display of an offer!

The good reason for this is simple: apart from the pro, the seller … who understands something?

Not the customer for sure.

Imagine my favorite butcher who keeps telling me that his roast beef costs € 22 per kilo (22.90) by outbid by a incalculable thing of style :

“You need 180 grams per person. “

My butcher does this all the time.

This awful shopkeeper, however nice he is, asks me on a Saturday when his store is armored to multiply 180 grams by 22.90 € ?!

This guy is crazy and I still have theimpression that it is more expensive than my tray taken from the supermarket where the price is listed per piece and even makes you forget that there is a price per kilo.

He must absolutely know himself the result of its multiplication and tell me that it will make me about 4 € per person, quite simply.

Question to illustrate: do you know the price per kilo of Lajaunie cashews? some mustard ? chewing gum? (the answer is in the 7th price tip!)

roast beef in person
Thus presented the price is included and therefore less important

5th price tip: present in batch

I’m revealing an open secret to you here.

However, you have to understand how a lot works.

To use it fully, we will be careful to fill our “basket” with several items of different values.

This is the ideal method of showing an overall price on a huge amount of service, commodity or whatever you are selling.

I use here of course also the crossed out price as explained above in order to give this interesting quantity promo effect here.

Of course, this old-fashioned trick seems obvious, but ultimately it is often overlooked or sloppy.

It will be used in mobile marketing as well as in e-commerce or traditional local commerce.

6th tip: present the inaccessible star

The contrast effect is used here.

This cognitive bias is still in the game and its use is simple.

Show premium product TOO EXPENSIVE, totally unpurchable, inaccessible.

Also display the low-end product too small to be credible.

Finally, display the product that you really want to sell at its normal price or a little more if you want to maintain your margins.

I myself used this method in another life in my old business and I guarantee that it has given me several positive effects:

  • Look cheaper;
  • Easily increase volumes, because the range covers all possible needs that do not allow customers to look elsewhere;
  • Sell ​​what I had decided or rather buy;
  • Plan my purchases and therefore better negotiate them upstream.
price tip: highlighting by 3
Which one will you choose?

7th tip: yours and Lajaunie

Tell me in the comments what is your little secretive tip!

I take this opportunity to give you the answer to the price per kilo of Lajaunie.

I want to warn that this will shock sensitive souls.

Be careful, hang on your little reader belt and don’t forget to check in store! The price is written in the caption of this image 😉

325 € per kilo
1.95 the box of 6 grams, or 325 € per kilo

To finish

We saw together how to ideally display our prices in each situation.

This notion of pricing is still very poorly understood and yet having these bases allows you to develop very clever strategies to succeed in increasing your prices.

I called this: reverse price elasticity 😉

To your comments!