Monday, January 8, 2018

BUSINESS: Ending Product Prices In 9-Something



In considering changing to ending my handmades products prices in 9-something, I recently did research about the perceived value of this marketing practice. I have resisted in the past, preferring to list prices as I considered them to be, ending in .00 mostly, and sometimes in .45, .65 or .25. I have always felt that this is more honest. The psychological info about what helps lead people to buy, however, is sound. It involves more about what people are comfortable with upon first observation of a price tag, rather than deceiving shoppers as I had previously thought.

I've never felt that it was fair to lead shoppers to believe that a product is $10 when it’s actually $11, by pricing it at $10.99. I've always considered it to be a trick to fool the eye. It is interesting, though, to learn the psychological reasons behind what people think when observing $10.99 versus $11.00.  Here’s one article that I read at FastCompany.com titled The Psychology Behind The Sweet Spots Of Pricing

Even as a crafter and artist involved in eCommerce, I am still protective of consumers. When retailers use deceitful tactics to wring a dollar from my purse, I don't like it. It has occasionally resulted in protest and permanent boycotting from me. While I think that the psychology of buying can be abused, there is a lot to be said for helping the customer to feel comfortable, rather than repelling them. I'm going to work on my prices. Am I caving in? I could perceive it that way, if I want to be negative. I choose to perceive it as putting my customers first, rather than being stubborn.

I do understand that the info that I've shared above won't make a difference to everyone who reads it, but it surely changed my stubborn stance. I'm always seeking ways to encourage visitors to spend time in my shops, which can lead to more sales. It also shows compassion for potential customers, because they don't understand that they are being repelled and possibly missing out on just what they were seeking.

Understanding psychological behavior about many things is important to me, and I learned from the psychological studies of prices that some people can be unconsciously turned away by price endings, when otherwise they might have found something that they liked.

I LOVE sticking to my guns about anything and everything, but changing my habits about pricing my handmades is a small price to pay for the possibility of increased sales.

As an aside:  The studies show too that there is also value in pricing certain types of products with prices ending in .00.  Those who are crafters and artists can effectively use both methods.

Other interesting articles about the psychology of pricing:

Wikipedia.com: Psychological Pricing
PragmaticPricing.com: 99 vs 97 - Can You Help?
Blog.kissmetrics.com: 5 Psychological Studies on Pricing That You Absolutely MUST Read


1 comment:

Sandi- ArtsyCrafteryStudio said...

Has the information that you've found here encouraged you to make a change in how you price your handmades products? Will you be trying the 9-something endings for your prices?

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