Psychological Pricing for International Markets: 5 Simple Tricks to Improve Sales

---

Psychological Pricing for International Markets: 5 Simple Tricks to Improve Sales Posted: 16 Apr 2013 11:06 AM PDT Written by: Jeff Leget, VP of Strategy and International Psychological pricing is used by retailers around the world to encourage buyers to purchase a product. Retailers work hard to send just the right message in their pricing. But if your product sells in different countries, you may want to consider the effects psychological pricing has in each of those markets. Take a look at your transaction history. If more than 10% of your sales are made to a single market outside the US, and you haven't established a fixed price for that country, you could be missing out on significant sales. ClickBank makes it easy to set a fixed product price for another currency. You can then adjust your pitch page to highlight your fixed price for international customers. Here are 5 things you should consider for psychological pricing in any market. 1. Charm Prices and Odd Numbers We all know that retailers like to price items to end in 9. People naturally associate these prices with a "deal."  This "left-digit effect" means customers react more favorably to 9.99 than to 10. Other ending digits that work well are 5, 7, 8 and 9.  Look at your product at today's conversion rate in a foreign currency and consider adjusting it to a fixed "charm price." 2. Simple Math Stores often put a product on sale and show the original price.  This comparison emphasizes how much a person is saving. However, people like simple math.  A sign might say "Was $20, now $18".  You won't often find a sign that says "Was $20, now $17.97". The reason is that the difference is harder to calculate. So, even though the customer saves more money and the $17.97 price has odd numbers, the math is more involved and customers don't see the difference as easily. 3. Common Currency Multiples Visit an ATM while traveling and you'll understand what currency denominations people have in their pockets. In the US, the $20 bill is the most common (other than the $1 bill). So, in the US, retailers often price their product at charm prices close to multiples of 20. If you are selling in international markets outside the US, you should understand the common currency denominations and adjust your prices to be a multiple of that denomination. 4. Extra Price Points There have been many studies of comparison price points. In any market, you may want to consider selling multiple products in packages and encourage customers to purchase just one of those packages. For example, the Economist magazine once offered their subscription at $59 for online-only, $125 for print-only, and $125 for online and print. At those price points, 84% of the customers bought the $125 online and print offer and nobody bought the print-only option. When the print-only option was removed, 68% of the customers bought the lower priced option. The print-only option never sold, but was important to demonstrate the value to customers to get them to buy the more expensive product. Dropping the print-only option caused a revenue loss of 59%. http://www.youtube.com/watch?v=xOhb4LwAaJk 5. Fine Font and Simple Syllables Customers first react unconsciously to the price they see. Although many retailers get this wrong, even the font size can affect sales. Sale prices should be in a font that is smaller than the original price. People tend to equate the size of the font to the scale of the price. So it can be confusing to customers to see a sale price in a bold font that is larger than the original price. After customers "see" the price, they often subconsciously "say" the price in their head. Prices with shorter syllables usually perform better than prices with longer syllables. Translate your product price in words into the native language of your target market and consider the syllables. You may want to select different digits to make the customer's internal conversation shorter.

You are subscribed to email updates from ClickBank To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610

Related Article: