SSActivewear psychology of pricing

Unlock the Psychology of Pricing

Why do so many prices end in .99 cents? Why does it seem like most businesses that offer levels offer 3 options? As a business owner, you know that these pricing trends are no accident. They are a marketing strategy that uses the psychology of pricing to help entice people to buy.

What is the psychology of pricing? According to Wikipedia, it is “a pricing and marketing strategy based on the theory that certain prices have a psychological impact.” In simple terms, this means it’s a pricing strategy that encourages the customer’s brain to think they are getting a deal or a great price. 

Examples of Psychological Pricing

Left-Digit Effect

Let’s use .99 cents as an example. Doesn’t it seem silly to price something at $5.99 instead of $6? What are you really gaining with a one-cent difference? We can tell you that one-cent difference has nothing to do with increasing margins and everything to do with the customer’s perception of the product. 

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Pricing Your Screenprinting Business for Profit: What You Need to Know

Every business owner has faced the challenge of pricing their products and services. It’s a difficult task to find that happy medium between profitability and customer appeal, especially if your company is just starting out. You want to sell your goods at a competitive rate, while staying above your cost margin.

Many companies create pricing matrices that calculate costs for printed Continue reading “Pricing Your Screenprinting Business for Profit: What You Need to Know”