Round your base product price
To encourage take-up of higher valued products in your range, place your base price within the same boundary
Common convention suggests that you should make full use of just-under prices such as .95 and .99 to encourage sales. However, If you're offering more than one product in your range, these seemingly-cheap prices can make the jump to the next product in the line appear more expensive, given how we encode and categorise price boundaries.
Instead, consider use of round pricing for your base product to achieve two things:
- Reduce the perceived cost of upgrading to the next, more higher value product in your range. This is due to the new base price now sitting in the same price boundary and therefore making any upgrades appear less expensive.
- Improve both the ease of numerical processing and implicit trust in your brand with whole, round numbers.
Research shows that any loss in revenue from a slightly increased price will be offset by a higher overall sale price as customers move up to a better product in your range.
Round your base product price
To encourage take-up of higher valued products in your range, place your base price within the same boundary
Common convention suggests that you should make full use of just-under prices such as .95 and .99 to encourage sales. However, If you're offering more than one product in your range, these seemingly-cheap prices can make the jump to the next product in the line appear more expensive, given how we encode and categorise price boundaries.
Instead, consider use of round pricing for your base product to achieve two things:
- Reduce the perceived cost of upgrading to the next, more higher value product in your range. This is due to the new base price now sitting in the same price boundary and therefore making any upgrades appear less expensive.
- Improve both the ease of numerical processing and implicit trust in your brand with whole, round numbers.
Research shows that any loss in revenue from a slightly increased price will be offset by a higher overall sale price as customers move up to a better product in your range.
Round your base product price
To encourage take-up of higher valued products in your range, place your base price within the same boundary
Common convention suggests that you should make full use of just-under prices such as .95 and .99 to encourage sales. However, If you're offering more than one product in your range, these seemingly-cheap prices can make the jump to the next product in the line appear more expensive, given how we encode and categorise price boundaries.
Instead, consider use of round pricing for your base product to achieve two things:
- Reduce the perceived cost of upgrading to the next, more higher value product in your range. This is due to the new base price now sitting in the same price boundary and therefore making any upgrades appear less expensive.
- Improve both the ease of numerical processing and implicit trust in your brand with whole, round numbers.
Research shows that any loss in revenue from a slightly increased price will be offset by a higher overall sale price as customers move up to a better product in your range.
Nuggets paired
Work directly with me
As the creator of Coglode, I'll be bringing all my behavioural tools to a small number of external projects next year.
