The psychological price of a sales object is the one that gives the buyer the impression that he is facing a price advantage, even if it is only apparent or insignificant.
Some standard psychological pricing practices are:
a) Price for a fraction of the product, not the whole price.
Examples of this practice include the display of $1.50 per 100 grams of cheese and not $15.00 per kilogram, as well as $1.00 per day for access to an online newspaper rather than $30.00 per month.
b) Gross price and discount instead of just the net price.
It takes place, for instance, when a bottle of wine is announced at $40.00, with an occasional discount of 20%, instead of showing only the net price of $32.00.
c) Slightly lower odd price in place of even price.
This procedure considers the fact that people read values from left to right and numbers on the left are more important, as in the following sample:
- $24.99 per printer cartridge in place of $25.00/unit
d) Prices of the offer components instead of just the total price.
This approach aims to show that the price of the product itself is much lower and other components make it higher, as in the announcement below:
- Grass cutter price = $500.00
- Tax = $35.00
- Shipping = $19.00
- Installments addition = $23.00
e) Product price alongside similar products at higher prices.
This practice is more used in sales points with little or no intervention from the salesperson, as follows:
- Sale offer of printer paper = $9.80/500 sheets
- Competitor B offer = $10.50/500 sheets
- Competitor C offer = $11.90/500 sheets
f) Main item with a reduced price and its add-ons with increased prices.
The prices of a travel tent and its accessories exposed below apply this tactic.
- Travel tent = $90.00
- Sleeping bag = $60.00
- Portable chair = $40.00
g) Discount amount without mentioning the offer start and final price.
In this case, the objective is to highlight the offered advantage regardless of its starting or final price, as this one:
- Mattresses 20% off
C. L. Eckhard, author of Pricing in Agribusiness: setting and managing prices for better sales margins.
Claudio Luiz Eckhard is a former professor, business consultant, and author of the books “Ajustando o Rumo”[Adjusting the Business Course], “Gestão pela Margem”[Management by Margin], “A Empresa Saudável”[The Healthy Company], and “Pricing no Agribusiness”[Pricing in Agribusiness].
