Pricing Strategy: Retain High Profit Margin Psychologically

Pricing your products isn't as easy as you can imagine of, indeed it's a big headache when you are the one who going to decide the prices - the main element for the revenue number.

The situation where sellers rush to launch their online store often happens, so all of them tends to wing the pricing strategy and simply follow their intuition to mark the prices. Obviously, this wrong move could harm the business growth in a long run. Although only the real sale results can measure the effectiveness of current pricing, a well planned effective pricing strategies could contribute 50% success to your business. 

Here are the several easy illustrations on the psychological pricing strategies:

One experiment is conducted to investigate the humans purchasing behavior on the different set of pricing. Researchers gave users a choice of buying a similar product or keeping the money. When given a choice between two set of bracelets, only 46% made a purchase when both were priced at 2 pounds. Conversely, when the two sets of bracelets were differently priced—at 2 pounds and 2.50 pounds—about 77% of consumers chose to buy a set. In short, it can be concluded that if two similar items are priced different, the peoples are more likely to purchase than if the two similar items are priced the same.

A very common marketing out there was to put a more expensive product next to the standard priced product. For examples, I would put a $50 fidget spinner right next to a $200 fidget spinner in order to sell bunches of the $50 fidget spinner. In short, placing premium products near standard options can create a clearer sense of value for potential customers, whom they will see the less expensive options as a very good bargain in comparison.