Is This Common Pricing Mistake Costing You Sales?

If you have an ecommerce site, how often do customers visit – often after a costly paid click – and end up leaving without buying? Are abandoned shopping carts all too common? Or, if your customers visit your retail store, how often do you see them compare several items, only to buy none of them [...]

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Taking the Pain out of Sushi Pricing

The menu designer for an Austin restaurant, Roll On Sushi Diner, must be a Neuromarketing or Brainfluence reader. A while back, I identified sushi-style pricing as being the worst possible approach because each tiny bite is a separate pain point (see Painful Sushi and Other Pricing Blunders).

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What Pricing Strategy Beats Discounts?

If you want to sell more product by running a sale, which would make more sense: advertising “price cut 33%” or “50% more” product? Functionally, the two are the same level of discounting. Researchers at the University of Minnesota found, though, that a “50% bonus pack” sold 71% more than a “35% discount,” even though [...]

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The Hidden Danger in Product Bundles

Does grouping products together into a single-price bundle increase the perception of value? Most of us would answer “yes,” but surprising new research shows there is at least one condition where such grouping can actually reduce the apparent value. In fact, the bundle may be seen as worth not just less than the sum of [...]

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An Easy Way to Make Your Prices Seem Lower

The way you display a price has a surprising effect on how consumers gauge the magnitude of the price. It’s important to read the price aloud as a consumer might, as more syllables in the price make it seem higher.

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What’s A Return Policy Worth?

Ask catalog or Internet retailers what a return cost them, and they will likely be able to cite some very specific numbers reflecting shipping costs, processing labor, damaged packaging, and so on. But it turns out there’s a specific value that customers apply to returns, or, more accurately, the OPTION of returning a product. That [...]

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The Price of Everything by Eduardo Porter

Book Review – The Price of Everything: Solving the Mystery of Why We Pay What We Do by Eduardo Porter Looking for more novel pricing strategies for business, I picked up a copy of The Price of Everything by Eduardo Porter. Although I didn’t find much practical advice or directly applicable research in the book, [...]

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The Luxury Strategy

What makes a luxury brand? In The Luxury Strategy, Jean-Noel Kapferer and Vincent Bastien tell us in great detail what distinguishes “luxury” from “premium” and the merely expensive. And, as one might expect, our emotions play a huge role in the way we perceive luxury.

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Cookie Framing

Years ago, when The Tonight Show ruled late-night TV and when all the guests weren’t celebrities promoting their latest book, movie, or TV show, host Johnny Carson interviewed the Girl Scout who sold the most cookies that year. This young lady, Markita Andrews, set a cookie-sales record that has yet to be broken. What was [...]

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Pricing Lessons from Restaurants

My last Neuromarketing post, Neuro-Menus and Restaurant Psychology, talked about various things restaurant menu engineers do to maximize sales and profits. I think it’s worth calling special attention to one aspect touched on in that post: how price presentation affects sales. Not, the price itself, which of course is very important, but the way the [...]

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