Proper pricing is an art that requires not only knowledge in the field of economics, but also understanding of consumer psychology. Prices for products and services not only determine the profitability of business, but also play a key role in the perception of the brand and its value for the client. Inappropriately set prices can push away potential buyers or, conversely, do not justify the costs of business. In this article, we will consider how psychological aspects affect the perception of prices and how to properly set prices so that they contribute to the success of your business as much as possible.
1. Psychology of prices perception
Understanding how consumers perceive the price is the basis of a successful price strategy. The price of a product or service is not always perceived as a purely economic unit, often it becomes an element of a comprehensive perception of the brand, quality and value.
Pricing sensitivity:
Consumers often evaluate the price through the prism of their sensitivity to the value of the goods. For example, people tend to pay attention to visually attractive price marks, such as “99” at the end of the cost (for example, 1999 rubles instead of 2000 rubles), which is associated with a psychological perception of a price difference as less than it really is.
Prices and perception of quality:
High prices are associated with high -quality goods and services. This phenomenon is widely used in the premium segment, where the high price in itself can be an element of marketing, emphasizing the exclusivity and value of the product. On the contrary, if the price is too low, the consumer can perceive the goods as poor -quality or suspicious.
Comparative effect:
When buyers see several prices for similar goods, they tend to compare them. If a product with a higher price looks slightly better than its cheaper analogue, the consumer can choose the expensive option, believing that the difference in price is justified.
2. Pricheval strategies
The correct pricing is not just a process of establishing the amount that the buyer must pay for the goods or service. This is a comprehensive strategy that affects all aspects of interaction with the client, from attracting to retention.
Penetration printing):
This strategy includes the establishment of a low price for a quick capture of the market share. It can be effective in new markets or when starting a new product, when the goal is to attract consumer attention and increase recognition. However, it is important not to lose profitability, since such prices are often insufficient to cover costs.
Sliding (or competitive) price:
This strategy involves the establishment of a price based on the analysis of competitors' prices. It is important that the price remains competitive, but at the same time does not go beyond the profitability of the business. The price should take into account not only costs, but also the price sensitivity of the target audience.
Premium.
When a product or service has a high perception of value and uniqueness, you can use the “sliding” strategy, setting high prices at the initial stage. This method is often used in the high technology or luxury industry, where the brand and quality of goods justify the high price.
Psychological prices:
As already mentioned, the use of psychological prices can significantly affect the perception of goods or services. For example, prices in the range of 999 rubles are perceived as much less expensive than 1000 rubles, despite the minimum difference. This approach works especially well with the pricing of mass goods.
3. How to take into account consumer behavior
To effectively set prices, it is necessary to take into account customer behavior and their perception of prices. Some methods of psychology and marketing will help increase pricing efficiency.
Price positioning:
Your prices should correspond to the position of your brand. If you position yourself as a premium brand, your prices should reflect this. The price should confirm the exclusivity of your product or service and correspond to consumer expectations that are looking for a high level of quality.
Price and emotional value:
Consumers do not always make decisions based on logic, often they are guided by emotions. Sellers can influence customer behavior using price marks that create a feeling of benefits or restrictions. Examples of such strategies include “limited sentences” or “discounts on the last chance” that cause customers a sense of urgency and encourage immediate action.
Discounts and promotions:
Discounts are a powerful tool for attracting customers, but it is important not to abuse this method. Frequent discounts can reduce the perception of the value of the product and create the feeling that the product or service is cheaper than they really are. The reasonable use of discounts, shares and offers “Buy one - get the second for free” helps to stimulate demand and maintain customer interest.
4. Accounting for costs and profitability
Price setting is not only a matter of perception, but also the calculation of the financial parameters of business. It is important that the price covers all costs and provides a profit corresponding to market expectations.
Calculation of cost:
Before setting the price, it is necessary to carefully calculate all possible costs, including production costs, marketing, rent and salaries. Without taking into account these factors, the price can be too low for the business to be profitable. By setting a price that does not cover the costs, you risk going beyond financial capabilities.
Marginality:
An important aspect of pricing is the margin - the difference between the price of the sale and the cost of the product. Constant margin monitoring helps to understand how profitable the business is and how you can optimize the price to increase profits without losing competitiveness.
5. Flexibility and analysis
Prices are not static and should be regularly reviewed depending on the changes in the market, demand and behavior of competitors. It is important to be flexible in setting prices and ready to adjust them in response to external circumstances.
Analysis of competitors:
Constant monitoring of competitors' prices and offers helps to adjust their price strategy in order to remain competitive. But do not completely copy the price of a competitor - it is important to consider your uniqueness and value offer.
Adaptation to changes in the market:
Price strategies should adapt to changes in the economy, for example, in inflation, change in tax policy or new consumer trends. Market analysis and consumer behavior will help to adjust prices in time and stay afloat.
Conclusion: The art of the right price
The establishment of the correct price for a product or service is not just a technical process. This is an art that combines psychology, economics and marketing. The price is not only the figure on the label, it is a symbol of value that affects the buyer's perception of the quality and exclusivity of your offer. The correct approach to price policy helps not only attract customers, but also create a stable competitive advantage in the market.
Understanding the psychology of prices and the ability to set the right prices at the right time is the key to the success of your business.