Setting the right pricing is crucial for maximizing profits, as it ensures that customers perceive value while covering costs and staying competitive in the market. It directly impacts revenue, customer perception, and market positioning, making it essential for long-term business success.
HubSpot contributor has published an article featuring five simple ways to improve your pricing.
He says, “In the 5 years I’ve run Nudge, I’ve interviewed dozens of experts on pricing. These aren’t run-of-the-mill LinkedIn gurus. They’re peer-reviewed researchers from some of the world’s most prestigious universities. In this blog, I reveal their top five pricing tips.
Simply put, offering a lower price isn’t the smartest way to improve your sales. Instead there are five other tips I’d suggest you try first.
1. Break your price down.
When showing your price, try to break it down into smaller increments.
Richard Shotton, in his book the Choice Factory, ran tests with customers looking to purchase a car. Some potential buyers saw the cost outright ($40,000). Some saw the cost per day over the course of several years ($11 a day).
Those who saw the price broken down were 4x more likely to rate the price as a good deal and 50% more likely to buy.”
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