OnDemand WTP Pricing Research

Three psychological pricing hacks to improve sales performance | 9 Spokes

Setting prices can feel like a gamble. You want to entice your customers with the illusion of a deal but also meet your margins and grow your business. How should a small business move forward? Why not take a cue from our friends Ben and Sigmund…..

Benjamin Franklin is credited with the saying “a penny saved is a penny earned”. But how much do we really value a single penny or a solitary cent?

Not a lot. In fact, there are countries that don’t even use pennies anymore, including our homeland, New Zealand. If you pay for a product priced $4.99 with a $5 bill in the Land of the Long White Cloud, you won’t be taking home any spare change. And yet products are still priced at 99 cents… not because it offers you a bargain, but because you perceive a bargain.

The “99 cent rule” is perhaps the most well-known example of psychological pricing—the theory that pricing has a psychological impact that leads to more sales conversions.

You don’t need to have studied Freud’s Interpretation of Dreams or taken a crash course in psychology to make the most of it as a small-business owner. Here are a few examples of pricing psychology to help SMEs improve their sales management.

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Three psychological pricing hacks to improve sales performance | 9 Spokes.