Tip: Don't Remind Customers That They Are Paying More

Monday, September 14, 2015

A recent trip to the supermarket revealed this sign. Can you spot the problem? It literally screams "we raised our prices."

Many consumers who see this sign will second-guess their purchases, and a good portion of them will question whether the products are worth the new prices being charged. After all, the store used to sell them for less! It's a common pricing mistake, but retailers should know better.

Pay for a new sign. Don't think of it as a cost. It's not. It's an investment that will pay off faster than you can possibly imagine. Patrons will slowly forget that you've raised prices and will be more likely to accept your new fee structure.

Advanced retailers should consider packaging their products differently (to make price comparisons more difficult). For instance, I saw one store that transitioned from selling bananas by weight and now prices by the quantity purchased. How many shoppers could even tell you what a banana weighs? Close to zero. I doubt that any of its customers could tell if the price went up, dopped or stayed the same.

Is your business earning what it should? Do you need a strategist to help you monetize your products? Contact us to help you price your products correctly. If you're in the software world, you'll certainly want to read the book on software pricing today!