When creating an authority niche site, it's crucial that you're able to price your products correctly.
Your pricing talks to your visitors in different ways.
It can tell your visitors that you "might be" hiding something-up your sleeve, your product is very affordable (when it isn't, etc.
That being said, how you price your products can send different kinds of signals to your visitors.
The question is...
are you aware of the kind of signal that you're pricing is conveying to your viewers? This article will help you determine the kind of signals that the number on your price tag is saying to the customers.
This involves psychologies based on studies that you simply can't ignore.
Here are the psychologies you should know about pricing.
The hideous dollar sign "$" You cannot believe the kind of impact adding the dollar sign is to your products.
Apparently, studies show that adding the dollar sign "$" or even adding the word "Dollar" to your price tag reduces your chances of sales.
Researchers from Cornell University did tests about this psychology.
What they did was they made 3 different menus for St.
Andrews Cafe Their first set of menu has the dollar sign "$" in front of the numbers, the second set doesn't have any dollar signs on it while the third one has the actual "dollar" word written after the numbers.
The results...
Customers spent more on the menu that has NO dollar sign or the word "dollar" on it.
Apparently, this is caused by the "Pain of Paying" phenomenon.
That being said, this test clearly shows that your $10 doesn't really just mean $10.
It can mean something else or it can look/seem a lot more expensive than it really is.
Although in-terms of monetary value they're definitely the same, psychology brings a different twist to it.
If you want to appeal to your customer's sub-conscious mind when selling your products, you might want to consider removing the dollar sign or the word "dollar" on your price tag.
Always remember that when creating an authority niche site, the more purchases your visitors make, the more credibility you'll get.
Considering that, you should never allow symbols or a single word to undermine you chances of sales.
The effects of the number 9 As we all know, the number 9 is WIDELY used when pricing products.
In-fact, it isn't uncommon to see an authority niche site with this kind of pricing.
Why do they use the number 9 when pricing? That's simply because it really does work! Apparently, the number 9 sends a signal to the viewer's subconscious mind that the product is of high value and that you are getting the product at a bargain price or the lowest possible price.
That being said, pricing a product using $2 versus pricing it at $1.
99 can cost you.
Your product's chances of being bought aren't as high if you price it at the even number of $2 compared to $1.
99.
So if you're pricing the products on your authority niche site, you might want the prices to end at number 9 compared to other even numbers.
The effects of tagging products as being "on sale" Studies have been made that there's an even better way for you to increase your conversion than just using the number 9.
This "even better way" is through using sale prices + quoting the original price.
Apparently, a price tag that has the original price on it ($65 as an example), with its sale price ($50 as an example) can out do a price tag that shows $49.
That simply means that the psychology behind putting products on sale (you must include the original price and the mark-down price plus the word sale for this to work) out performs the effects of the number 9.
Then again, imagine what's going to happen if you incorporate the psychology behind using the number 9 plus the psychology behind using the "sale price"! You'd get the best results combining both of these psychologies (You HAVE GOT to use this strategy on your authority niche site!).
The effects of comparing your price against your competition Studies have been made saying that explicitly telling your customers to compare your product's pricing to other brands or competition can have unwanted effects to your authority niche site.
Although a lot of marketers use this strategy to clearly emphasize that their product is cheaper therefore the better buy, it isn't always ideal to use this strategy.
Here's what studies show about explicitly telling your customers to compare.
A research from Stanford Marketing Study showed that explicitly telling your customers to compare may change the buyer's behavior in very fundamental ways.
Chances are the potential customers may spend less or may not buy at all because of the fear that they are being tricked in some way.
Considering that, you might want to think twice about explicitly telling your customers to compare your product's prices to its competitors.
Although it'll clearly show in numbers that you product is cheaper, it's emotional and psychological effect can cause your prospect not to purchase in the end.
Be very careful when asking visitors to compare the pricing on your authority niche site to other sites.
The effects of ALWAYS going on sale Although we've tackled just how powerful "sales" can be as far as increasing your product's conversion rate, having your authority niche site often on sale has its adverse effects.
Here's how being on sale can hurt you: a.
) Your customers will think that your prices (when not on sale) aren't real.
This kind of thinking will lead to them waiting for sales and not purchase from your store on regular days.
b.
) Going on sale can boost your competitions morale.
Events like sales can be a sign of weakness in the eyes of your competitors.
When that happens, you would've boosted your competitions morale making them more aggressive in their business strategies.
These are some of the psychologies involved about pricing.
As I mentioned above, if you want to create an authority niche site, you should price your products accordingly.
What better way for you to price your products than to use and consider the psychologies about pricing that we've talked about right now.
Don't just put random numbers or any symbols in your price tag because it looks good.
Use the proper psychology when pricing to increase your conversion rate and establishing your site as an authority niche site.