How to increase margin without losing sales (3/3)

Research suggests that only 60% of online purchasing decisions are based on price

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Purchase software or subscription plan

When a company rents material lifting equipment, they often pay $200 per day, but $500 per week. So if they plan to rent it for at least 3 days, they might as well rent it for the week. The same goes for software, whether there is a monthly or annual subscription. Similarly, auto-renewing subscriptions creates a significantly longer queue for renewals. Offering auto-renewal discounts can often be attractive to both buyers and sellers.

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Emotional value of the purchase

Sentimental value or emotional attachment to a product can significantly alter its value. Collectible items or products that are finished in production can have significant price fluctuations. The sale of winning team jerseys and memorabilia will need to be coordinated with the event. Experience from previous seasons can provide some insight, but during the season, how many price levels were tested?

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This is the last of our 3-part series on cognitive bias and pricing 101. If you want to learn more about the importance of pricing and how to achieve the best results by optimizing it, feel free to reach out to us. We’d be happy to chat and discuss your specific needs to help you maximize your store’s profits.