One of the most challenging parts of starting a business is determining product prices. A number of factors come into play when deciding your products or services’ rates. You could have an easier time deciding by conducting a price testing. This one lets you monitor the effects of slightly changing your pricing. It should be done carefully and you might even need a bit of strategy to do it. When you are unsure where to start, here’s a guide from an ecommerce website development company to help you.
1. Offer products in bundle.
A lot of shoppers these days don’t mind shopping in bundles. It’s more convenient for them to buy the things at once and they may not even realize it. When you do bundling, at least ensure that your customers get a better deal when doing so. Perhaps they could enjoy a big discount when they buy in bundles. Make sure to bundle every product that will be relevant.
2. End the prices with nine.
It’s one of the most intriguing parts of marketing but we just got used to seeing prices that end with this number. It’s called charm pricing and sometimes psychological pricing. For example, you could set a product for $39 instead of $40. We don’t know where the magic of nine come from but one thing is for sure: items with nine sell faster compared to those ending with other number.
3. Provide your shoppers with option.
Doing so influences what your shoppers would choose. You can use this as an opportunity to make more money. So let’s say you want to sell a lipstick. You can set an option where shoppers could buy that lipstick along with a foundation and a brow set at a slightly higher but still discounted price.
4. Consider the length.
Look at these prices: $1,200 and 1200. Which ones look better to you? Surprisingly, these are the same but people still go for the second option. Yes, the one with the least symbols are given higher priority. Again, it’s psychological pricing.
5. Reframe your prices.
Let’s say you offer a subscription worth $100 a year. If you repriced that at around $8 per month. People will still go for the $8 compared to $100 because that looks more affordable for them.
6. Make your fonts smaller.
A bigger and bolder font looks overwhelming. So try to reduce the size of the font if you have a large one. This will be changed depending on the kind of platform you use for selling. A lot of businesses found success in increasing their prices a bit more.
When all else fails, just try to set your prices a bit higher. There is nothing wrong in experimenting. If your sales decreased because of a higher price, you can always go back to the original price.
In terms of testing, you can use free tools to help you proceed with your price testing. Consider the right time to do every testing. Try each strategy one at a time.