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How Psychology Can Optimize Your B2B Pricing Strategy | Business 2 Community

There’s more to a perfect pricing strategy than economics alone. Alongside input costs, demand, and industry competition, there’s another factor determining the success of your pricing: psychology.

Psychology and marketing go hand in hand. Today, I’m taking a quick look at four psychological principles behind successful pricing strategies. By combining these psychological quirks with a bit of customer insight, adjusting your pricing strategy by as little as a few cents could massively improve your sales.

1. Charm Pricing
The simplest psychological pricing tool at your disposal is also the most common. Whether you’re buying a 99-cent bag of chips or a $29,999 sedan, both B2C and B2B markets are saturated with prices that end with the number nine.

This is known as charm pricing, and there’s a reason for its proliferation: it has a significant impact on sales. In his book Priceless: The Myth of Fair Value (and How to Take Advantage of It), William Poundstone conducted eight separate pricing studies. In each instance, prices ending in nine sold 24% better than the nearest “rounded” price point.

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How Psychology Can Optimize Your B2B Pricing Strategy.

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