What is Psychological Pricing ?
Pricing always remains a critical component for sales and business because it’s related to purchase and budget. Hence, the business has adopted a psychological pricing strategy to gain and acquire customers. Psychological pricing is defined as an odd pricing technique to play with the customer’s mind to maximize sales. Psychological pricing is framed in such a way that encourages customers to make purchases.
Psychological Pricing Strategy Example
|Psychological Pricing||Even Pricing|
|Rs 9 | Rs 99 | Rs 149 | Rs 999 and so on||Rs 10 | Rs 100 | Rs 150 | Rs 1000 and so on|
Now, you can visualize that if you price your product at Rs 9 rather than Rs 10, the customer intends to purchase because their psychological mind says the cost factor of the given product and services is low.
A customer will be encouraged to pay Rs 5999 as their mind believes the cost is low and within budget as compared to even price.
Psychological Pricing is applicable for both type of sales ; b2b and b2c.
Psychological Pricing Examples In Retail Category
Psychological Pricing Examples In Industrial Category
Psychological Pricing Examples In Fruit Category
Psychological Pricing Examples in Restaurants Category
Hence, you can understand every business category has adopted psychological pricing technique to boost sales.
Psychological Pricing Strategy To Increase Sales
- Odd price – Even discount = Odd Price
Give customers odd price and then discount to even price so as final price should be an odd figure .
2. Even Price – Odd Discount = Odd Price
First start with even price and then discount with odd price to make final price odd
3. Odd price – Odd discount = Odd Price
To get odd result keep everything odd.
Pricing remains a critical component in the customer buying decision. Hence, make pricing your strength, not your weakness.
With rich experience in sales & marketing, Neeraj Upadhyay specializes in sales, business development, service, revenue achievements, training, team building, price, strategy business expansion, new product, and many more. He is an expert sales and marketing professional and hence his written article are most among our reader’s favorite.