How to Boost Retail Sales With Psychological Pricing
Apple’s strategy is effective for three different reasons. First, shoppers with a lower budget will be steered toward the cheaper option to get the product they want at a price they can afford. Second, the price of the cheapest option is validated by the fact that there are more expensive versions available. Third, shoppers will be able to see the value of the higher-priced versions, as they come with more memory or other capabilities for a relatively low additional cost.
Getting into a shopper’s head is the first step in getting them to convert. After all, a little psychological pricing can go a long way. It’s just a matter of proving to the shopper that the price and timing are right.
Angelica Valentine is the content marketing manager at Wiser, a price intelligence engine for brands and retailers.