Online research suggests that only 60% of online purchase decisions are based on price.
Software or Subscription Purchase Plan Optimization – When a company rents an equipment material lift, they often pay $200 a day, but $500 per week. So if they plan on renting for at least 3 days, you might as well rent it for the week. The same is true with software, whether there is a monthly subscription or annual. Similarly, auto-renewal for subscriptions creates a significantly greater tail for renewals. Offering auto-renewal discounts can often be attractive for both buyers and sellers.
Emotional Purchase Value – Sentimental value or emotional attachment to a product can alter product values significantly. Collectors’ items or products ending production can have significant price fluctuations. Selling winning team t-shirts and souvenirs will need to be timed to match the event. Experience from prior seasons can give some insight, but during the season, how many price points were tested?
This is the last of our 3-part series on cognitive bias and pricing 101. If you wish to learn more about the importance of pricing and how to achieve the best results by optimizing it, do not hesitate to contact us, we’ll be happy to have a chat and look at your specific needs to help you maximize profits with your shop.