Discounts and promos on products that you purchase have an interesting reason why they exist. They’re not just stick in a price tag and part of the whole marketing process. Companies do hire price consultants to identify what price should match into the product so it would be good to sell in the market. With that in mind, sales would be increased and the attention of your target customers can be seen instantly.
This common practice of influencing the consumer’s choice to buy the product has a direct influence on your finances. Definitely, yes! The increase of the product price, if you’re not aware, can decrease your savings. What are the common practices of pricing that can influence your buying choice? Let me give a few.
Drip pricing is showing your customers one part of the actual price. The other is revealed through the buying process by an additional charge or another fee when you pay through credit card.
Reference pricing is a practice wherein the retailers show the current price of the product that is against the original or the normal price.
The use of the word free attracts the consumers’ attention by suggesting that when you buy two products, you’ll get another one or another product.
Bait pricing is the practice of getting the attention of the consumer with the discount to buy a product when he/she purchase another versions or brand of it.
These complex pricing strategies are not easy to identify when you are shopping inside the mall or store. However, having an idea with these practices can help you effectively decide on which product would best suit your need as a consumer.
The question is this, how does pricing practices affect the way we handle our money?
Scientific studies showed that the above practices can mislead consumers in their buying choices. As such, it proved the efficiency of the pricing strategies only to companies and retailers.
You have already experience seeing a discounted product and then, you don’t want to choose other options. This is a disadvantageous of using pricing strategy as a factor to be biased on only one product that is always giving promos to its customers.
The study conducted in 2003 by Kopalle showed that consumers are prone to believing pricing in every product even though it is obvious that they are twice/200% higher than the expected retail price.
For your businesses, you can implement pricing strategies on your own product but see to it, you’re also providing quality to people. Pricing strategy, in my own opinion, should offer your customers the best choice to save money through purchasing bulk of items with little discounted and/or buying a two or three items of the same product with freebies.
It is a must to do your own research on how these pricing strategies work in your industry. You must identify what is working and what is not based on the perceived value your business is providing to your customers.
If you’re a consumer, see to it that you’re not always depending on pricing practices so you can make your best buying decision.
Learning what’s trending in the market isn’t always the best strategy to look for products that can be discounted after it had been launched. The reason is that it’s the pricing strategy that can only entice you to buy without knowing that it is more expensive than the actual price. Be observant on these marketing strategies that instead of saving you more, the reverse happens.
One tip that I’d like to share to you is to search for quality brands. Even if they are expensive, they must be your choice since they will last in terms of materials used to produce the product. Quality is more important than quantity. This is not always applicable but in non-food industries, this is best to consider since you’re looking for a strong product features.
It’s time to make your best choice so you won’t regret after you make your purchase. Always see the quality rather than the savings you will get from buying the product.
What is your best tip that you’d like to share to us in terms of purchasing decision that can save some money?