5-25-23

Is your price in the wrong spot?

May 25, 2023

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What's Happening

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Boost Sales With a Simple Pricing StrategyToday's insight comes from one of our favorite newsletters; Ariyh. According to scientific research, where you position your price can make a significant impact. Recommendation: Position your price below your product. Studies have shown that when the price is displayed below the product, customers perceive it to be lower, leading to increased purchase likelihood.✅ Take it a step further: Previous research suggests that prices positioned to the left also appear smaller. Test both positionings below and to the left to optimize your pricing strategy.Findings:📊 In experiments, participants perceived a $2.49 dental floss to be 9% cheaper when the price was at the bottom of the image. Plus, a liquor store experienced a 35.2% sales boost when prices were shown below the bottles.Why it works: The metaphor that “down = less” and “up = more” is ingrained in most of us as a concept. For example, one can be “king of the hill” or “up in heaven”, and hit “rock bottom” or “go down to hell”. So when we see a price in a low vertical position, we associate “down” with “less” and perceive it as a smaller number than what it is.Dive deeper here.

Today's Challenge

Review where you position your prices on your store shelves, ads, website, packaging, and anywhere else you mention your price.
Move the price to a position below your product whenever possible.
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