Pricing Strategies Than Can Improve Sales

Pricing Strategy for Growth from The Startup Garage
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The Right Price Can Make a Big Difference

Using smart pricing strategies can make a big difference to your sales and help you succeed in a competitive marketplace.  Each product and service is unique and therefore what works for some companies may not work for others.  Nonetheless, the strategies outlined below may be a good solution for your business.

1. Give Your Customer Choices

By giving your customers choices, they feel in control of the purchasing process and are more likely to feel committed with their purchase.

2. Limit Your Choices

However, when you provide your customers with too many options, they can experience action paralysis, feeling demotivated to purchase or incapable of making a decision.  Provide enough options to allow your customer to make a decision about their purchase but not so many that you confuse them.

3. Utilize a Price Anchor

Price anchoring utilizes a human psychological tendency where people rely on the first piece of information offered when making decisions.  With that said, the best way to sell a $500 necklace is to sell it next  to a $1,500 necklace.  By placing a premium product or service next to your standard version, you can create a value or bargain comparison that will drive your customer to make the purchase.

4. Reduce the Pain Points

By making the sales process as simple, efficient, and quick as possible, you will find that your customers are more prone to purchase.  The less that is required of the customer to buy your product or service the better.

5. The Old #9 Classic

One of the oldest tricks in the book is ending the price of your product or service with a 9.  Rather than selling your necklace for $500, try $499.  While there is much anecdotal debate about the effectiveness of this strategy, several researchers conclude that this strategy is in fact effective.

6. Test Your Pricing at Different Levels

See how your total sales and profits change when you test your product and pricing mix.  When selling a premium and a standard product, try adding a third version.  See if sales go up if that third version is a notch below the standard.  And likewise, if that third product is a notch above the premium.


Whether you have a question about pricing strategies or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.