Download - Pricing strategies boot camp session 1
![Page 1: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/1.jpg)
PRICING TECHNIQUES BOOT CAMP
Copyright Spring into SalesSession One
![Page 2: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/2.jpg)
Session One
Introduction to Pricing Techniques Why display pricing What happens if I remove the $sign Rounding prices How can I increase sales tomorrow Hot Seat
![Page 3: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/3.jpg)
Introduction
Neuromarketing Science of Shopping
![Page 4: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/4.jpg)
Pricing
Show your prices
Women won’t ask Men get mad
![Page 5: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/5.jpg)
Do $ signs make us spend less? Cornell University StudyChicken Pie $10.00Chicken Pie 10.00Chicken Pie Ten dollars
Relationship between money imagery and selfishness
![Page 6: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/6.jpg)
Session One
Introduction to Pricing Techniques Why display pricing What happens if I remove the $sign Rounding prices How can I increase sales tomorrow Hot Seat
![Page 7: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/7.jpg)
What happens with rounded prices
Notepad priced at $20.00
Perceived value might be
$20$19
Notepad priced at $19.95
Perceived value might be
$19.75$19.50
![Page 8: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/8.jpg)
What about high priced products University of Florida Study 5 year study, Florida, Alachua County $500,000 $494,500
Sold more quickly Closer to original asking price
![Page 9: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/9.jpg)
How we weigh prices Mental measuring stick Based on initial price Increments We want a fair deal
![Page 10: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/10.jpg)
Session One
Introduction to Pricing Techniques Why display pricing What happens if I remove the $sign Rounding prices How can I increase sales tomorrow Hot Seat
![Page 11: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/11.jpg)
Rounding or Precision Pricing
$29.99, $30.00 or $29.88
Schindler & Kibarian Study, University of Pennsylvania
![Page 12: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/12.jpg)
Effect of Odd Pricing
Catalogue One
Was $30 now $24.00
Catalogue Two
Was $30 now $23.99
Catalogue Three
Was $30 now $23.88
3x30,000 = 90,000 catalogues. 6 month study.
![Page 13: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/13.jpg)
Number of Purchasers per catalogue
Surprised?
More people made purchases
0.88 0.99 0890900910920930940950960970980
923
968
921
Purchases
![Page 14: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/14.jpg)
Spend per person per catalogue
Surprised?
Higher spend on the $.99 ending prices
0.88 0.99 0$76.00
$77.00
$78.00
$79.00
$80.00
$81.00
$82.00
$77.68
$80.91
$78.75
$ spend per person
![Page 15: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/15.jpg)
Sales revenue per catalogue
Surprised?
Better revenues
0.88 0.99 0$68,000
$70,000
$72,000
$74,000
$76,000
$78,000
$80,000
$71,699
$78,317
$72,529
$ Sales volume
![Page 16: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/16.jpg)
What does this all mean? 5.1% increase in number of people who
purchased 2.7% increase in $ amount 8% increase in total revenues
$2,000 per order/event10 orders/events per year$20,000 @ year = $1600 increase
![Page 17: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/17.jpg)
Why is this happening? Underestimation Mechanism
Process left to right $29.99 = $29 $29.99 = $20
Association Mechanism $x.99 = sale = bargain?
![Page 18: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/18.jpg)
Session One
Introduction to Pricing Techniques Why display pricing What happens if I remove the $sign Rounding prices How can I increase sales tomorrow Hot Seat
![Page 19: Pricing strategies boot camp session 1](https://reader037.vdocuments.us/reader037/viewer/2022100600/55658e11d8b42a2b6d8b4ed0/html5/thumbnails/19.jpg)
HOT SEAT