The Psychology Of Pricing: Part 3 – RD266

<p>This is week three of my psychology of pricing series. Where I share research-proven strategies to influence people to part with their hard-earned money. Some of these pricing tactics work great with your design business, and many of them are perfect for helping your clients get more sales.</p> <p class="p1">If you haven’t listened to <a href= "https://resourcefuldesigner.com/episode264">part 1</a> and <a href="https://resourcefuldesigner.com/episode265">part 2</a>, I suggest you do so before continuing with this one. Let’s continue with the series.</p> <h2 class="p1">The Psychology Of Pricing - Part 3</h2> <p class="p1">As I mentioned in the previous parts of this series, these tactics were taken from a very <a href= "https://www.nickkolenda.com/psychological-pricing-strategies" target="_blank" rel="noopener">in-depth article by Nick Kolenda on the psychology of pricing</a>. Have a look if you want to read through it yourself.</p> <p class="p1">Since you’re here right now, I’ll presume you want me to continue summarizing each pricing tactic. So let’s get on with the list.</p> <h2 class="p1">Tactic 19: Raise the Price of Your Previous Product.</h2> <p class="p1">This tactic applies whenever you or your client introduces a new, more expensive version of a product. Although under certain circumstances, it may also work with the services you offer.</p> <p class="p1">If you’re introducing a new, more expensive version of a product, what do you do with the old version that’s left? Many people would lower the old one to sell the remaining stock as soon as possible. But a 2010 study suggests raising the price of the old product might be a better idea.</p> <p class="p1">If you lower the old product's price, you’ll be reinforcing the lower reference price, which makes the new product seem more expensive, making people question if it’s really worth it.</p> <p class="p1">Let’s say the old product originally sold for $100, and the new product is priced at $130. If you drop the price of the old product to a clearance price