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Price Comparison

     People will buy from you if they think your prices are competitive. You just need to show them the higher prices in the market.


     Psychologically, people use initially received information to make subsequent judgements. Apply this to selling products: Buyers use the price they see first to evaluate whether other products are expensive or cheap. You often see this technique in action on TV when first, they say, "Only $29.99!" and then they say, "Only for today, we are adding these special items, all for $29.99!" This leads viewers to compare price of the product alone and the price of the product together with the special items. As a result, the viewers feel that the special offer is a good deal.

Another good example was the introduction of the iPad by Steve Jobs. At first, he said, "We are going to price it at under $1,000," and the figure "$999" was prominently displayed on the big screen behind him. Then, the real prices were displayed. This tricked the audience into comparing $999 and the real prices of the iPad, which ranged from $499 to $829. Those were, of course, cheaper than $999, and the audience felt that buying the iPad was a good deal.

Securing Profit

     Regularly, business owners compare their prices with the best deals and try to offer even better deals. As a result, their profit margins are reduced. Instead, if you use the psychological technique explained above, you can make customers think that your are offering good deals without cutting profits. For example, find stores selling the same products at higher prices than yours or compare slightly a discounted price with the full suggested retail price. The point is not to try offering "the best" deal; try finding bad deals and compare yours with these.

© October, 2015