How To Price Your Product – Choose The Best Price

Price Tags

It doesn’t matter if you’re launching your own product or service, resell items or negotiating a deal on your house, you should define the price you’ll charge. At that moment a lot of questions appear in your head. How high should the price be? Should it be rounded? Which numbers are better to use? Let me provide you with some tricks that will answer those questions and make your price seem lower. Those tips will subconsciously influence people to perceive your price lower.

1. Reduce the Left Digit By One

I’m sure you see a lot of price tags with 95 or 99 in the end. And the marketers use those magic numbers for the reason. It’s already proven that people are more inclined to buy your product if they see the price like this. Check out Gumroad’s conversion results:

Gumroad Conversion Rate

You may think that it’s all about 9 at the end of the price. However, the left digit you use in the price is also responsible for the better results. Look at the example! A one-cent difference between $5.80 and $5.79 won’t matter. While the difference between $3.00 and $2.99 will change a lot.

Why does it happen? Our eyes catch the leftmost digit “2” first and associate the magnitude of the whole price with it. That’s why the price of $2.99 is perceived to be the way lower than $3.00.

2. Display Prices In A Smaller Font Size

Our brain has a universal conceptualization of size. Thus, there’s something similar for it in VISUAL size and numerical size. That’s why customers perceive your price to be lower if you display it in smaller font size.

Another trick is to position larger elements around your price. Thanks to those elements your brain will perceive the price element smaller visually and therefore numerically. Apply the opposite for discounts. Since you want to emphasize the size of the discount, you should display the number in large font size.

3. Use The Words Related To A Small Magnitude

Choose the words around your price carefully because some of them can affect people’s perception. Use the words that people will associate with a small magnitude. For example, “low”, “small”, “tiny”. Therefore, it’s safer to use a phrase like “Low Maintenance” near your price than “High Performance”.

4. Define Price For Shipping And Handling Separately

To price your product/service more attractively, mention the fee for shipping and handling separately. This way, your potential customers focus on the base price, rather than the total cost. Also, if they compare the amount you’re charging with the imaginary price they’re ready to pay for your product, they’ll be more likely to recall the base price without additional fees. Compare yourself which offer would be more appealing for you – $18 + Free Shipping or $15 + 2.99 for shipping.

5. Offer Payments In Installments

If you offer your audience the option to pay for your product in smaller installments, people will most likely focus on the lower price of the increment. Which is great for you because the chance of the sale increases. Let’s assume you’re selling an online course for $499. By offering 5 payments of $99 you make the offer more appealing to your audience.

6. Define And Mention The Daily Equivalence Price

This makes people look at the amount you’re charging from a different angle. You may still mention your regular price along with the daily equivalence. The trick is this breakdown to usually a pretty small amount helps people perceive the total price lower. To make it even more resonating, you may compare the daily price to a small cash expenses everyone of us has, such as a cup of coffee.

I hope these tips will help you to define your best price appealing to your audience.

If we’re talking about perceived value and the actual price you’re paying, I’m encouraging you to check out One Funnel Away Challenge which was the best $100 spent. For this money, you get a huge amount of value worth the way more than $100. So, if you want to start or boost your business, OFA challenge will be the best way for you to go!