Smart Pricing Sells More with Neuromarketing
- How does pricing affect customers’ decisions?
- Do prices affect customer experience?
Next time you look at a restaurant menu, see if there is $ sign in front of the price? Many restaurants have removed the $ sign from the menu. Why?
According to a study published in 2008, removing the $ sign can increase a restaurant’s sales by 8%. This study shows that how prices are presented can influence our buying decisions.
The Neuroscience and Psychology of Pricing
For your business, prices determine your revenue and profit. From the customer’s prospective, your prices can influence their buying decisions. With the internet, shoppers can find the lowest price instantly.
Neuromarketing research has shown that smart pricing strategies make a big difference. Our seasoned Neuromarketing experts can help you boost sales by improving your pricing based on Neuroscience and Psychology.
- Change Your Customer’s Price Anchors – Through online research, experience, or guesswork, most consumers have some idea of what they should pay for products and services. Your potential customers already have a price in mind when they reach out to you. That price is an anchor. That anchor plays an important role in their decision-making process. By understanding the brain’s anchoring bias, we can advise you on how to sell more by introducing new a new anchor or changing the existing anchor.
- All Prices Are Relative – The fast-thinking emotional brain can only make rough calculations. When customers compare prices and discounts, their calculations are often wrong. For example, a 12% discount is perceived as much more attractive than a 10% price cut. Small differences can trigger a decision. Also, a specific discount, like “$500 cash back,” can appear larger than it really is. The brain won’t do the calculation. We know dozens of ways to make your prices more appealing.
- Give Customers Smart Comparisons and Sell More – Shoppers love to compare items and prices. Amazon uses Neuromarketing tactics everywhere to sell specific items. Sometimes they show a product next to a more expensive item. Customers most often choose the lower priced example. When three products are shown for comparison, the mid-priced item sells best. When multiple products are presented for comparison, the first product shown typically sells best. We can guide you to sell more by having the right number of items at the right prices.
- Round Down Prices to Boost Sales – When consumers see prices, they usually perceive only the first two numbers. That’s because the fast-thinking part of the brain calculates roughly. $19.97 is seen by the brain as a significantly lower price than $20.00, even though the difference is only three cents. All major retailers employ this pricing strategy. However, when it comes to high-priced products and services, this may not work or can even backfire.
- Price to Sell High-Priced Items with Neuromarketing – If your products or services are costly, you need different methods to convince potential customers and clients to pull the trigger. People tend to do more research and think longer about such commitments. Neuromarketing strategies that work in these situations can help.
Get Pricing Strategies Right and Watch Revenues Climb
How businesses should handle price presentation depends on what they’re selling. You need different strategies for high-end products and services than for less costly items. Service businesses that can only quote prices after creating an estimate have completely different needs. Business-to-business sales require different techniques. As the only Neuromarketing company in the Midwest, we consult with all types of businesses to help them create the most effective, brain-conscious pricing methods.