Posts tagged Pricing Psychology

3 Amazing pricing psychology tips to try right now

If you are starting a new business or introducing a new product into the market, pricing is a topic that is always on top of mind.

You think, “How to price my product?”

In theory, the pricing formula should be straight forward (see below).

Material cost + Labor cost + Overhead cost = Total cost
Total cost + X% of Desired profit = Product cost

Assuming you zeroed on your product price, there are a few pricing psychology principles that you could embed in your pricing strategy.

So, let me ask you a question,

Have you thought about how pricing psychology can influence your consumers’ buying behavior?

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One clever tip to use when pricing your products

If you think discounting the price of your product would increase its attractiveness in the eyes of your customers, think again. 

Remember the last time you wanted to book a flight ticket? 

You check the flight prices and think of your options. The next day, you check the prices again, and you see the prices have gone up. You regret not taking the decision on the spot, and you tell yourself… 

“I could have saved.” 

You hesitate again, thinking you could get a better deal. You think tomorrow the prices could change. You wait. You check the prices the next day, and guess what? The prices have gone up again. 

“That’s it,” you say. “I am buying my ticket now,” you tell yourself. 

You buy the ticket.

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