Psychological pricing is a strategy that retailers have employed for years, but the increasing level of competitiveness in the space has made it imperative.
San Francisco, CA (PRWEB) June 10, 2014
Online retail in the United States is rapidly increasing and flexible pricing strategies are a big contributor to this growth. Pricing has become a top priority for retailers who want to claim a well positioned spot in this nearly $250 billion industry. Psychological pricing is a way for retailers to be more competitive, profitable, and increase sales.
Psychological pricing taps into the way that shoppers’ brains work and encourages them to make a purchase. The main goal of psychological strategies is to make consumers feel like they are presented with a great deal that they can’t pass up. Studies have found that perceived price and value influence buying behavior significantly. Wiser’s infographic provides important psychological pricing tactics that online retailers can use to boost profits, sales, and revenue.
Wiser is an industry leader in pricing that has helped thousands of retailers reprice to be profitable around the clock. Arie Shpanya, CEO of Wiser and a firm believer in psychological pricing, disclosed, “Psychological pricing is a strategy that retailers have employed for years, but the increasing level of competitiveness in the space has made it imperative.”
Charm pricing, or pricing that includes nines, is a well known example of psychological pricing. Consumers consider prices with nines in them to be a better deal and buy them more often. The most effective pricing strategies have an original price for reference and a marked down price that includes a nine.
Incorporating dynamic pricing is another way to optimize profit and sales. Dynamic pricing strategies make it possible for prices to be flexible and automatically respond to the ebb and flow of the market with live price changes. Wiser suggests that retailers use dynamic and psychological pricing strategies in order to sell more and increase profit.
To view the full infographic, visit http://www.wiser.com/infographic-psychologicalpricing.
Wiser provides a complete suite of solutions to give retailers, brands, and manufacturers the edge to stay both competitive and most importantly, profitable.
Wiser’s core product is WisePricer, full-featured dynamic pricing and merchandising engine that monitors, analyzes and reprices retail products in real-time. WisePricer enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy.
Wiser also offers a MAP monitoring solution, WiseMapper, for brands and manufacturers to monitor and protect their pricing across the thousands of retailers selling their products.
For more information on Wiser and WisePricer, please visit wiser.com/wisepricer.