A pricing strategy, if done right, can be a persuasive tool that can convince a prospective customer to buy. In fact, it would not only convince them to buy, but also to spend a little more than they originally planned to. Following is a San Diego Saba SEO guide to creating a foolproof pricing strategy.
Normally a prospective customer who is looking online to buy something would be given a choice between buying and not buying. There would be a button on the landing page asking him or her to “Buy Now at $10.00”. The customer would have to make the decision and can easily press the back button the minute any kind of doubt sets it.
However with a simple change in the pricing strategy, you can increase the chances of engaging your customer for a little longer and increasing the likelihood of him or her buying from you.
Suppose the customer arrives on your landing page and is faced with two options. One is the basic offer that sells a bag for $10.00. The other is the deluxe offer that offers the customer a bag and a manicure kit for $11. Your prospective customer is no longer faced with a buy or don’t buy option. Instead he or she has to choose between “buy for $10” or “buy for $11 and get a little extra”. The manicure kit for $1 more makes all the difference and means a lot to a typical customer who is looking to stretch every dollar.
Instead of thinking about the toiletries bag that he or she originally wanted, the customer is now thinking about the nail kit and probably wondering where else he or she will be able to buy one for $1. In the customer’s mind, he or she probably pegs the cheapest manicure kit at a price higher than $1.
For the customer the choice is simple: go for the deluxe offer with the toiletries bag and the $1 manicure kit, which has greater value. This works because while the customer is spending more than he or she originally planned to, it isn’t an outrageous amount of money.
This strategy works well when you give the customer a choice between regular and deluxe offers that are priced at just 10 to 15 percent over the regular price. That way it is not too heavy on the customer’s pocket and with smaller purchases it would feel like they are adding just some extra change to the offer and getting much more in terms of value.
With the second option (the manicure kit) in place, the customer not only feels like he or she is getting an added benefit, the customer also feels that if he or she does not get the kit, he or she is missing out on what is clearly a good deal.
For this strategy to work, the key is to not ask for more than 15 percent for the extra benefit. The possibilities with this pricing strategy are endless. You can use it to sell everything from couches and ebooks to online events. Customers can buy just the couch, or a couch with two cushions for a little extra. They can buy the ebook, or they can pay a little extra for games and the audio version of the book. They can watch an online event or pay a little extra for a chance to interact live with the coach.
This pricing strategy also allows you to increase your prices tactically. Since most customers will probably end up buying the deluxe offer, after a little while you can bump up the price of the regular to $11. When you do that you automatically bump up the price of the deluxe offer as well, which means you can now ask for $12.50.
This works best when you give the customer two offers, a bonus and price the deluxe at just 10 or 15 percent more than the regular. That way you don’t challenge the customer by presenting them with too many options. You also don’t put a strain on their pockets when you ask for just a little extra and give a more valuable bonus in return.
Contact the experts at Saba SEO today to learn more valuable online and search engine marketing strategies for your company. Call (858) 277-1717 for a free consultation today.