We would like to share with you a small and simple trick that is likely to be helpful to all of you.
All of us know that the price we set for our products can have a significant and immediate impact on our sales.
There is a marketing theory that indicates the tremendous impact that odd pricing has.
This unique theory – referred to as psychological pricing – teaches us a simple and applicative rule that can dramatically improve our results. It always works and improves our performance. Therefore we felt the need to share its essence with all of you.
A few words about this theory.
This is a marketing theory, taken from the Behavioral Economics field. According to this theory, the price we set for a product has a psychological impact on people, which may lead to a higher demand than we expected.
After reading this article, it’s certain that you’ll understand better how to set up your prices. Making this small change will skyrocket the profits of your dropshipping business.
Psychological pricing means that we should set for our products incomplete prices, also referred to as odd prices, that are slightly lower than a round number, e.g. 10.99.
Because most of the customers will not see any difference between the price of 10.00 and the price 10.99. Therefore, it is really not recommended to use a number ending with the digit 0. Customers will treat it in the exact same manner as they would treat the same number with the .99 ending.
What is the explanation of this?
Consumers, as rational as they might be, tend to make many (sometimes irrational) decisions affected by human psychology.
People are reading numbers from the left to the right, this why usually people ignore the decimal digits of a number. So instead of turning it to the nearest number (for example 10.99 to 11), people will ignore the decimal digits on the right and will treat it as a 10.
Here is another interesting thing about how human psychology affects a buyer’s decision. When consumers see prices with a decimal fracture, they feel the product is sold at a certain discount. On the other hand, round numbers make consumers believe that the product’s price won’t get any lower.
This actually means that the price of 10.99 is not only treated as equivalent to the price of 10.00, but it also seems to have a higher value. This will encourage more sales. Amazing, right?
So why are we telling you all this?
First of all, for all of you to improve and become more efficient as Dropshippers. Secondly, and most importantly, we want to remind you and reassure you that we improve our system 24/7, to help you grow your Dropshipping business and earn more.
You can use AutoDS dropshipping tool to make this pricing automatic. We have enabled the rounding prices to .99 in such a manner, that the final price will be the price nearest to the original price. Also, the system ensures that the feature will not lead the price to a loss.
To find out more about this feature, and how to adapt it in your eBay dropshipping business, watch the following video:
In conclusion, we can see that simple human psychology tricks can directly affect our business results.
We recommend you apply this feature to your eBay stores.If you are working with AutoDS dropshipping platform, you can do it automatically by heading to Settings > Store Settings > Pricing and check the “Set Price Cents Value .99” field.
You can also change it to any other number, for example, .97 cents which also does the trick.
We will be glad to know about your results!