You can tell a lot about a business by how it sets its prices.
Psychologically, consumers are programmed to behave a certain way when they see the price of a product or service. Your pricing strategy can control the entire perception of your brand.
It’s similar to the way different color schemes can impact sales on your website.
Whether you realize it or not, I’m sure you think the same way when you’re shopping.
If you see the same item listed for $5 at one store and $50 at another, which option would you say has higher quality? The more expensive one.
However, even though one store is selling products at a higher price point, it doesn’t mean their quality is superior to that of the products from the store with bargain prices.
It’s all about perception.
Don’t blindly price your items. You need to have a reason and a strategy behind your pricing decisions.
Just look at how popular car brands are perceived by consumers based on their prices:
Ironically, the majority of your business efforts will cost you money. But your prices will ultimately be the determining factor in whether or not you’ll make a sale.
I see this problem all the time in my consulting work.
Many business owners don’t have any rhyme or reason behind their pricing strategies. As a result, their sal… Read More