You probably know that the art of selling isn’t tied to a fixed set of formula that works for all. Retailers use all kinds of tricks to persuade consumers to spend more money.
At the restaurant you habitually go to, you now get smaller portions of serving for the same price. At the supermarket, that detergent you’re looking for is harder to find whereas those mints that you don’t need are prominently displayed near the payment counter. Brands fight for the middle shelves of grocery stores so their products are seen at an eye level and hence, have higher visibility.
If it’s your turn to sell, you too can employ these tricks to help you sell more. Mind you, they’re by no means magic. They’re simply psychology.
Here are 5 common ones:
Make your own product “look” cheap-ER
Widely known as the “anchor decoy”, this trick is used by sellers to make something look relatively more attractive by comparison.
For example, when Williams-Sonoma advertised their bread maker for $279 and it wasn’t selling well, they thought that customers wanted something fancier with more features so they introduced a $429 model. But instead, sales of their $279 model started picking up after the introduction of the higher model.
What happened there? Sold alone, the $279 model looked expensive. But when put side by side with a $429 model, the former now didn’t look that costly at all.
Expanding your menu of options for consumers like this one not only makes certain products look comparatively “cheaper” but also makes your market appear larger.
(Source: Priceless by William Poundstone)
Give the illusion of exclusivity
If you want to look “cool” and sophisticated and retain that image with your group of friends, which brand of phone would you prefer carrying around? An iPhone or a Nokia? Most likely the former.
You may be shaking your head how others pay a ridiculously expensive price for a “branded” product that seems to have almost exactly the same features as a generic one. Yet, the psychology of it works especially for those consumers whose lifestyle gravitates towards the highest priced items. It gives your product a sense of exclusivity so status-conscious buyers will pay the price, no matter how high. A high price which deems your product as a luxury will also mean high status (or at least in perception) for buyers and therefore sales for sellers.
Just consider how Rolex began selling more watches when they increased, rather than decreased the prices and status of their products.
Use the middling effect
If the first trick targets buyers looking for something cheaper while the second trick targets those looking for the most expensive and exclusive, the third one targets those who don’t want to be seen as “cheap” yet also don’t want to pay too much.
Unless you only have few dollars left in your pocket, you’ll be wary of the lowest cost brand and may assume that low price means low quality. I mean, there’s got to be a catch right?
So if you’re the seller, why not make your product averaged price instead? This works most effectively for customers who are unsure of which brand to pick.
One study showed that when consumers were offered 2 kinds of beer: $2.50 for a premium beer and $1.80 for the cheaper beer, around 80% chose the more expensive beer. But when a third option was introduced for $1.60, 80% bought the $1.80 beer and 20% the $2.50 beer. Nobody bought the cheapest option.
Use the magic number: 9
Love it or hate it, you see them all the time: in menus: $1.99; in supermarkets: $9; in flea markets: all items for .99 cents.
In eight studies published from 1987 through 2004, prices ending in the magic number 9 ($1.99, 49 and so on) boosted sales by 24% (source: Priceless).
It’s like our brains are wired to still round down numbers ending in 9 instead of rounding up; such that you see an item selling for $19 and automatically think you’re still paying less than $20 compared to an item which sells for $16 dollars and think you’re already paying more than $15 for it.
Make your product a bargain
This is my personal favorite because I see them all the time during sales. Retailers will deliberately scratch out an original price of $50 and then put a marked down sticker of $39 below it (while still making the $50 visible obviously). I mean, how sure am I that item isn’t really $39 in the first place? Yet, luckily for sellers, it works. Hey, who doesn’t love a bargain, right?
Depending on your target market, sales goals and what reputation you want your brand to portray, you can use some of these tricks to psychologically persuade your consumers to buy. Whether you may be selling something as small as a can of beans to something as big as a car, you can employ similar techniques that even as a consumer, you often fall into.
What other psychological tricks do you know of to increase your sales? Let us know through your comments below.
(Article source: www.quora.com)