Pricing Strategies for Small Businesses

Pricing Strategy — By on April 30, 2013 12:13 am
small business pricing strategiesThere are many small businesses out there that overlook the importance of pricing products and services. The case studies we are about to cover will reinforce the importance of pricing options and how much they actually benefit your company when done right.

The following study offered 3 types of magazine subscriptions: online ($59), printed ($125) and a combination package of online and print ($125). As you can probably imagine no one took the print only subscription, 16% took the online only, leaving 84% of the subscribers choosing the online and print subscription. The print only subscription was removed and the study was conducted again. This time only 32% chose the online and print subscription and 68% went with the online only. With this said, make sure you offer different options with similar or equal prices as decoys in order to make the other more attractive to your consumer.

Even the simplest maneuver can get you results. A restaurant in New York took away the dollar sign from the prices on their menu and found that the dishes without the dollar signs were perceived as less expensive so try doing without them.

A university tested 3 different price points of the same dress, $34, $39 and $44. Out of the three prices, the $39 dress produced the most sales. This magic number ending in 9 can also be used with cent endings like $39.99.

Another university held a study with small and large fonts when listing their prices. They found that consumers perceive sale prices to be a better value when the price is written in a small font rather than a large, bold typeface.

As you can see there are many different strategies that can be utilized when not only pricing your product or service but also physically listing your prices as well. Those of you who have experimented with similar or completely different pricing strategies, what have you found that works?

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