13 Secrets of Pricing Psychology: Boost Your Profits Today | Andy Turba | Skillshare

13 Secrets of Pricing Psychology: Boost Your Profits Today

Andy Turba, Marketing Strategist & Content Designer

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20 Lessons (35m)
    • 1. Course Introduction

      2:35
    • 2. Section 1 Overview

      0:15
    • 3. Lesson 1: The Power of Number 9

      2:31
    • 4. Lesson 2: Does Size Matter?

      1:38
    • 5. Lesson 3: Balance Is the Key

      3:02
    • 6. Section 2 Overview

      0:09
    • 7. Lesson 4: Mastering Contrast

      2:56
    • 8. Lesson 5: Rounding Up + Impulses

      3:13
    • 9. Lesson 6: Word It Carefully

      4:34
    • 10. Section 3 Overview

      0:14
    • 11. Lesson 7: Implementing Discounts

      1:33
    • 12. Lesson 8: No More Fear of Paying!

      2:03
    • 13. Lesson 9: The Number Games

      1:47
    • 14. Section 4 Overview

      0:12
    • 15. Lesson 10: Timing Tactics

      1:35
    • 16. Lesson 11: Red, Black and Green

      1:19
    • 17. Lesson 12: Ascending or Descending

      2:31
    • 18. Lesson 13: Upselling Similar Items

      1:21
    • 19. Bonus Lesson

      0:54
    • 20. Course Afterword

      1:03
20 students are watching this class

About This Class

Are you struggling with pricing of your products & services? Do you keep wondering, day and night, if a price tag of $49.99 would make more sense than $49 or $50 - and if such a small change could potentially impact your business revenue or freelance income in any way?

It can.

And that's why I've built this course, to remove this doubt from your life once and for all! Uncovering these secrets will help you to sell more products or get more customers – or both! By the end of the course, you'll master the art of pricing psychology that will help you to boost profits and you'll also gain more confidence in asking clients for money. All thanks to just few small, but game-changing, tweaks.

I'll teach you how to use timing tactics, upselling methods, price color strategies, suitable wording or what's the psychology behind various number sizes - and even how to remove customer's fear of paying plus so much more!

I prefer a straight to the point, no BS approach, so you'll be leaving full of great ideas & practical strategies in less than an hour! With today's hectic lifestyle, it's not always possible to commit for longer anyway.

What makes me qualified to teach you?

My name is Andy Turba and I'm a marketer with years of experience in the field across various industries. You can find me on my Instagram or Web. Along my full-time job as the head of marketing in the music industry, I also run my own marketing & design company and a non-profit dog merchandise brand where 100% of profits are donated to a shelter.

During the years I've been implementing & tweaking marketing strategies across various companies, from 1 employee startups to multi-million market leaders. That included some major fails too, which allowed me to gather some invaluable data - there's lesson to be found in everything :)

Again and again, any company or country I worked in, majority of the discussions revolved around one topic - correct pricing of the products & services. After seeing so many people struggle and not being able to find the correct answers, it was time to take things into my own hands. I've started collecting all the tried and tested methods and eventually poured them into one place – and this course was born!

My Guarantee

I've built this course for people like you & me and as a full-time marketer, I'm available to answer any of your questions. Remember, never feel that your question may sounds stupid, this is a no judgement zone and we're all here to learn and improve! Feel free to post a question in the course, or contact me directly, if that's here, via social media, my website, or email.

What topics will be covered in this course?

Lesson 1: The Power of Number 9

Lesson 2: Does Size Matter?

Lesson 3: Balance Is the Key

Lesson 4: Mastering Contrast

Lesson 5: Rounding Up + Impulses

Lesson 6: Word It Carefully

Lesson 7: Implementing Discounts

Lesson 8: No More Fear of Paying!

Lesson 9: The Number Games

Lesson 10: Timing Tactics

Lesson 11: Red, Black and Green

Lesson 12: Ascending or Descending

Lesson 13: Upselling Similar Items

... and I've even snuck up a little bonus lesson for those who get to the end.

Maybe you're asking yourself if this course really is for you?

Truth to be told, I'd do the same. Let me put my two cents in: If you're a marketer with years of experience from Asia owning a successful company or if you've just started on your marketing journey in America with empty hands, there's something for everyone, from any part of the world:

  • You may be running/have just opened a store on shopify, etsy, squarespace, wordpress or other...

  • You might be a freelancer offering design, marketing, SEO, web development or other services...

  • You may own a brick and mortar store selling clothes, furniture, jewellery or other...

  • Maybe you're a complete beginner who started just today...

  • Or an advanced professional looking for that extra edge...

No matter what industry you're in or what experience you possess, this course will help to get to the next level. And that's my promise!

Thank you and I'll see you at the first lesson :)

Best,

Andy Turba

Transcripts

1. Course Introduction: Hey, great to see you here. It means a lot to me that you chose the scores. My name is Andy Turban, and I'm a market of its six years of experience in the field across various industries. Along my full time job as the head of marketing in the entertainment industry, I also run my own marketing and design company and the nonprofit Doc Charity Mansion. Eyes brand very 100% off profits are donated to adapt shelter. I've always been super eager to learn new things, apply them and then help people to do the same. And the eagerness to learn is something we obviously have in common. Since you are here today, my mission with these courses to motivate you to discover new strategies on how to sell your product so you can leave full of great ideas on how to make those profits explode. Courses like this made all the difference to ride my career and the ability to give back in this way. It's really drink come true for me. If I do realize you may be asking yourself the school's release for you and truth to be told, if you're a market over the years of experience for America, or if you just started the on your marketing journey in Asia, there's something for everyone from any part of the world. I hope it as much from learning about these principles as I had created it. So let's dive right into it. Psychology enhance off A capable market can be a powerful tool. Oftentimes, we don't even realize what the influences our decisions. Even the simple things, such as the option to choose from multiple products presents an opportunity for the seller . Apply various tactics without the customer even noticing. That's the beauty and power of pricing psychology. But the question is, Are you using it to its full potential? Now? Let's make one thing clear right from the beginning. Pricing psychology is a collection of toxic and techniques that do not trick the customer or Amanda reality in any way quite the opposite. Actually, it guys the buyer in a natural way so they can make fast and simple decisions all by themselves and with their best interest in mind. The key components off these strategies are numbers and visual presentation. It goes without saying that people find it easier to remember as productive and shown as compared to when hearing about it on the radio. But costs or in a conversation, even field based cells person find it easier to close the sale than verbal offer is supported with clear and visually appearing recommendation at this all up. And you can influence customers to choose the right products for their needs while boosting your profits of Indian situation. Now let's move on. Time is money. Time to teach you how to apply these strategies so you can start using them today. 2. Section 1 Overview: this course is divided into four sections for 10 lessons in total. Without further ado, let's start with the 1st 1 will be discussing the power off number nine. Why the size matters on how to implement more people product options. Let's Tulis. 3. Lesson 1: The Power of Number 9: when it comes to pricing, Number nine has two important functions. Firstly, it gives an impression that the price is low over, and secondly, I think it helps the customer to decide faster. Let's take a look at how this is implemented. Do 99 appears to be lower than three because the part before the single point has changed. It feels like a notable saving, since the whole sum is not different. If you would offer the same discount, but with a different prize about only the part. After the decimal point changes, it doesn't have the same impact. Imagine an at that calls like this. Limited time offer all shower gels now to 89 instead of 2 90 Just doesn't feel like you're getting a deal, does it? The saving appears to be even higher than the part before the simple point changes from two digits to one, such as from 10 to 9 99 Another thing to consider is the type of audience who, walking with in some casings over using the number nine, made it official and harm your stategy or even devalue the product. That's why some sellers stand to go from number nines gentle sibling number five. In this case, three becomes to 95 appealing Toby more legitimate it to 99. And let's not forget Number seven, which is used quite often you to the general opinion of it being a positive number. Sotu 97 would work quite well to this phenomenon is best demonstrated in the study conducted by M. I T and University of Chicago, subjects of our ostriches between clothing prices 34 39 $44. Believe it or not, the item prizes that in $9 was purchased the most often, even though it's not the cheapest one disproves the number nine and Gramps more attention with the potential to increase the value off a product in customers. Eyes. Another company called Gambro did a similar study on their website. They wanted to see if listing prices using this principle impacts the conversion right in any way. The result of the test was this product president. 99 cents had conversion rate off 3.6% if they proceeded. $1 conversion went down significantly to 1.88%. Similar results of attitude when they price products in 1 99 instant off two and 2 99 instead of three. Conversion rate was about 50% higher when the price ended with nine. Number nine can be a really powerful tool if used correctly, so make sure experiment with it. Next time you get the chance, I'll see you at the next lesson. 4. Lesson 2: Does Size Matter?: psychology is not just about choosing the right numbers. Another thing to consider is the physical size and position. Naturally, physically larger numbers few as they have higher value, while physically smaller numbers are the exact opposite. If you want to lower the perceived value, changing the phone sides or part before the decimal point makes all the difference. If the process 9 99 just make the 19 smaller than 99 you can also go the other way. In case you are combining this principle, we do want to be discussed in the first lesson. In this case, 99 would be smaller than 19 making the whole press a pre like it's actually just 19. Another viewpoint to consider is the placement off the price. When horizontal alignment is in question, humans automatically come from left to right. Low number two high 123456789 10 Which means we subconsciously associate the lower values with left side and higher values. Be the right side when talking. Val Vertical alignment. We go from top to bottom. High number too low. Then 98765 42 1 all under each other the customers end of associating the top are with high value and bottom part with low value. How to put this ruling toe work If you want your customer to translate the price, a slow but it at the bottom or left side. If your aim is to make it easier for them to accept the high amount, position it at the top or right side. As you can see, size does matter. Small details sometimes make a huge difference with jump onto the next listen. 5. Lesson 3: Balance Is the Key: decision paralysis. I'm sure you've heard of this phenomenon before. Simply put, if the customer has many options to choose from the end up paralyzed, the chance that they'll end up not bank anything is significantly higher. They might not even come back to a store ever again. Now this works the other way around to offer to a few options, and the customer will feel limited in their choice. They won't have enough samples to compare it to each other again, resulting in much smaller chance of them making any purchase. The famous Jim experiment, done by psychologists seen Anger and Michael Leper demonstrated really well the ever comparing customer behavior in two groups. One group could choose from 24 kinds of them's the other from six Long story short. They came to a conclusion that the higher the number off product variations there is smaller. The chance the custom of it under bank was the ideal number of variations. Then they found out it's just between six and nine. The ideal strategy depends on the type of product or service offered. For example, if my marketing agency will be offering up the nine services, that will be the beginning often end, you'd be much better off with around three, maybe four. If you really need to offer up to 10 types of services, you can always at least group them into groups off three or four packages. This leads us to the principal fake offer. Even though it may not seem like a lot, there's plenty of companies that struggle to present, even for differently priced types. Off services. It's simple isn't how they protect his built. Let's look at an example your own company X that offers copyrighting services. Pressing structure here is simple. One page is $20 plastics. If declining stem pages to be written, your free is 200 plus tax. This is a hard one because there's not much to work with since you charge per patient and that's it. How could you possibly present declined multiple, differently priced offers so they get a sense of choice? Let's get creative. Offer 1 10 pages. Price per page. 20 total 200 prospects. Delivery two days in digital form offer to 10 pages. Price per page. 19 total 190 plus tax and delivery is 30 days in digital for off for three 10 pages. Press per page. 25 total, 250 plus Takes delivery two days in digital form. An in printed form offer for 10 pages. Price per page. 24 total 240 plus tax delivery, 30 days in digital form and imprinted for the president. France between offers one and two or three and four respectively, is really small. While the delivery day difference is really high, there's a 99% chance that your kind with Big One of the options for today delivery window. You end up selling what you want it while they were given multiple options to choose from a win win situation again. 6. Section 2 Overview: in this section, we will discuss how to use contrasting offers when it's good to round out numbers and also how to choose the right wording. Let's go. 7. Lesson 4: Mastering Contrast: Wei Lim Poundstone describes interesting experiment in his book Priceless. The meat off Fair value to groups off part if it spends, were asked to different questions. Question one is the every time a temperature in Los Angeles the lower or higher than 500 degrees? What do you think is the average temperature? And question two is the every summer temperature in Los Angeles lower or higher than zero degrees? What do you think is the average temperature? The outcome was rather interesting. Groups that's wearing the first question gets the average temperature to be much higher than the second group. But why is that? People then do associate fax in their head and especially numbers. In contrast to factors presented in the environment, the number presented to each group served as a contrasting baseline, resulting in the first group subconsciously associating the average temperature with higher number, while the second group did the exact opposite contrasting offer. Seven. The purpose off, increasing the value off the product you're trying to sell whiles, making the client feel that the price is justified and not as high. Let's look at an example based on merchandise you're looking at do research is one is 400 the other $500. Now these mind appeared to be quite expensive, standing there all by themselves like that. But what if you had one more? With the price tag off $2000 customers price perception of the first to research is instantly changes, thanks to the addition of the contrasting offer, making them appear to be more attractive and affordable to finish off. Let's look at one more example that shows are using contrast can change one's expectations . William did another experiment, but he showed a house for sale toe four groups off people. These groups were mix of students and the real estate agents. Each group bushels in the same house, but with different asking price. All they had to do was write down their best guess on what the actual value off the house is. Here are the results. When the listing price is 119,900 the average estimate word by students was around 107,000 and by experts around 111,000. When the listing price was 129,900. The average estimate word by students was carrying 120,000 and by experts are in 123,000. When the listing price was 139,900 the average estimate word by students was around 123,000 and by experts are Unhand ID and 24,000. And lastly, When the listing price was 149,900 the average estimate word by students was for 100 38,000 and by experts around 127,000. Very same house, but significantly different estimates. Higher prize automatically leads to increased expectations. Simple, but ever so incredible. See you at the next listen. 8. Lesson 5: Rounding Up + Impulses: in the first principle, we've discussed how number nine can evolve feeling off a level price. The truth is, it doesn't apply in all cases and highly depends on the product and your target audience. If you're trying to get the reader your car, you have a really hard time selling it for 49,999 or even 49,999 99. This looks quite suspicious, however, adjusted slightly to 49,000 and you're good to go, even though in almost identical principle is applied. If your prices are firmly set, then it makes sense to use the number nine principle. The customer. One question it, since it already feels like they're getting in discount and they can kind of guess it's a known negotiable amount. On the other hand, if you're selling a product for the press is typically open to discussion. The news of more complex numbers such a 625 and the reason it appears like a result off some detailed calculation the custom of on the question it as much as they would. If you prostate at 600 just look at it from your point of view. If you go on eBay and see a secondhand high temp priced at 600 you would probably have the seller to go down to 550 maybe even 500. If he's, however, priced at 625 you'd most probably ask them for this camera, ranging from 5 to $25. To sum it up, price can be displayed from four ways. First around it. Such is just 50. Intention. Fast processing off a simple price. Second, with zero such as 50.0 intention. Clear design displaying prices in the same clear format. Third in attractively, such as 49.99 intention medium speed processing wells. It walking the feeling off discount and forth in exact way, such as 49.92 intention. Slow processing speed of a complex price. Loach Hands of the customer wanting to negotiate. All four of these are prized about the same, but each presents the number in a different way. One last thing I want to make sure it's mentioned in regards to this principle is that the humans have to process each price through the brain. Obviously, the buying imposes split into do categories, depending on the amount brain capacity humans used to process each some emotional and pragmatic. If the impulses emotional, such as when buying a $10 roller coaster right around the bride's makes more sense, since it allows the customer to make a quick decision without too much thinking. It's a fast transaction because the brain is concentrating on the immediate outcome of the purchase, The fund and crazy right rather than the price itself pragmatic imposed, on the other hand, requires the shopper to stop and think more long term. If a customer is considering different types of lotion at the drugstore, for example, exactly crises such as 3 75 or 4 99 allowed into combat products more accurately, they're trying to make the right decisions because the product is going to be used long term. As you can see, emotions are an important part of customers. Journey should not be underestimated. Let's look at what the next lesson has in store 9. Lesson 6: Word It Carefully: numbers are just one part of the story structure of the whole environment, surrounding the price place in the important role to If your aim is for the customer to perceive the press, it's low. The surrounding words or sentences have to be chosen carefully. Quite often, sellers concentrate on making the press slow as possible, but surrounding in with words such speak huge and massive and similar. This could make the custom of wrongly associate the words with the price itself rather than the service. Let's look at an example. Web hosting now only 7 90 amount, according thing to say, would be lowering costs by 20% when compared to competition suitable for small and medium sized companies. Little to no administration requirements. Incorrect things to say would be a huge annual saving of up to 20%. And compared to competition, the largest online that the base of websites big flexibility in administration requirements . Now they know cases. It's entirely possible to avoid the big words. So if that's your case, try to mention them as far from the price as possible and mix it up with at least few of the small words now that if you've discussed the formulation of words, let's look at the numbers. If the number expressing the benefit is higher than the product price, then it should be highlighted. Surprised before the price? If the number expressing the benefit is lower than the price, the opposite applies. Correct Way would be subscription for 30 days. Now only 1990 or subscription now only 29 99 for 20 days in correcting to say, would be subscription now only 1990 for 30 days or subscription for 20 days. Now only 29 99 which you want to avoid, is making it too easy for the customer to calculate the values. For example, if the subscription cause 19 for 19 days, then it's pretty over the how much did they end up paying a day? $1. But 19 90/30 days is not something they could calculate quickly, which results. Enterprise being perceived as lower and just generally makes it easier to accept the price . I mentioned previously that customers tend to associate the price with other numbers in a context. So let's elaborate on these using an example. If you want to make 15 hours appear cheap, you can surrounded with higher numbers. These numbers don't have to have monetary value either. For example, they could be expressing number off happy customers, product weight and so on. Let's use the dinner plate set as an example. Price. $15 includes 25 plays in different sizes. Over 96% of customers would buy from us again. Another price comparison tactic talks about the order of your products from the most expensive to least. If you have a knish shop, this is an easy one click solution. You can sort your products in descending order. What you could also do is at an expensive future product on top off the page. For example, if you're selling phones, there could be a single best selling future phone and the top of the page they would displayed an iPhone that cost $1000. Under that, you'd only six different mothers off forms ranging from 300 to 500. The aim here is to show the customer high price products first to build the base line. The following items one. Then feel s expensive. If you want to reassure customers that the press is correct, guess what you can do so by using psychology, too. There was a study done by Game King and Christians Nesky. It proves that if you multiply or at to get the numbers that are in close proximity to the price and the result of this calculation ends up being the product breast itself, there's much higher chance the customer will buy. I know this might not make sense right from the beginning, so let's help you to understand this better using a pizza advertisement image in four different pizza ads. Each would consist of a picture of the pizza price, which was always 24 some description off the offer if the description says three medium pizzas with up to eight toppings was the result. If you multiplies these numbers, that's right. 24. Same applies with an example of a description saying for small pizzas with six toppings, which again, when Multiplied is 24. And so and so if you would like to have her say something like three million pizzas, unlimited toppings or for small pizzas with toppings, well, that doesn't add up to 24 in any way. These simple calculations happen in your brain, subconsciously giving you the feeling of the price of being correct, because simply it all adds up. You are at the end of this section. Great job. 10. Section 3 Overview: you are about to start a foot section, which means you're halfway through way to go. I hope you're getting a lot of new knowledge in this section. Will discuss how to work with discount, Eliminate fear off bank will play some number games. Let's see. 11. Lesson 7: Implementing Discounts: ready for some behind the scenes streaks future in this can values. There are do basic principles. In the 1st 1 we used a physical space between the numbers, trying to either highlight or lower the difference. If you want to highlight a small price difference, leave some extra space between the values. Let's say the virgin applies off. 10 is now This counting to nine. You can display this way, Number 10. Then press space on your cable, like four times than an arrow pointing to the right, another four spaces and then number nine. This way, it's all nice and clear with plenty of space to breathe. If you would leave just one spacing between then, you wouldn't be so particularly attractive because it's all just do crammed together. Thomas and more of its did an experiment where they concluded that if it's simple to calculate the discount, it's easier for the customer to imagine the deal they're getting. This eventually increases the chances off them making a purchase visually higher. This county, in this case, would be the orginal price off. Four. Discounted to tree easy math in Craig Way would be discounting the price off 8 67 to 7 48 simply can calculate the difference in your head so quickly. Even though it's higher saving than the previous example, you will end up selling less because it's a bit confusing. Working with physical space could make a whole lot of difference. It's all about the recognizing the small details now on to the next listen, where they will try to make the customer less fearful. 12. Lesson 8: No More Fear of Paying!: no one is overly eager to let their hard earned money go. Let's be honest here. I have the price harder. It is to say goodbye to them. Should have introduced yourself a 1,000,000 times. It hurts way more to pay some $100 in cash. Then it is to do so by card or online. When there are no physical knows percent. Here are a few examples are now to eliminate customers. Fears off bank cash. Less payment is mentioned above. Good place to start is removing any physical transaction car payment, credit top up and similar tactics, resulting a customer losing their association with the amount they will think about in compared the price, much less they'd based. If you're working with a specific group of customers, you can probably guess when they have money. And when they don't. Each country has set standard pay dates. They're smaller, turns off people making beak or impulsive purchases in the week leading to a payday, while the opposite applies in the days following payout. If, for example, naked paid between the end of the current and beginning of the next month, that would be an ideal time to offer them your product. You could also try free trials or samples for us, followed by cold direction in the week prior to pay. They were money is low and hopes her high advisor toe off from major dicks. Counts or limited time offers. Installments or partial payments is much easier to pay. $10.10 times in 100. Only one go, isn't it? This principle applies everywhere. So have a thing where it can be used with your business to currency symbol. Last step on how to eliminate the fear of paying is to remove or minimalize the currency. Single, just make it smaller or even completely remove it, and the customer will perceive the whole amount less sm monetary value. The action also helps with the removal of the pain barrier in customers. Mind we went really deep into customer's mind in this lesson. Always tried to see the problem from your point of view. After all, you're a customer, too. 13. Lesson 9: The Number Games: It's not all about what number is displayed, but how it is displayed to First tactic is to lose any space. And that's between the numbers. Have ever make sure to keep in mind with number you're working with. If it's six figures in the buff, customer may not be able to process the number correctly without any spaces or dots. Let's take number 2840. If you insert adult or space after the first digit, instead of using known it's going to be proceed, it's higher number this because it clearly states how many thousands there are and gives the customer more time to think about the amount. On the other hand, it will be much harder to process the number 1,840,650. If there's no doubt or space after the millions or thousands, customer may lose interest in trying to figure out what the number is when no punctuation is used and move on without taking action. As you can see, correct use of the tactic Holly depends on the number and your intention. Second tactic is about not a rounding up large numbers. Keep it exact for two reasons. We've discussed the first reason previously. Customers tendency to negotiate exact prices is lower, since they seem to be justified almost as a result off some detailed calculation. Second reason works with the general opinion that around in absolute Onley smaller amount. If you were under high numbers of all, was the feeling that the price has been manipulated with in this case, Keurig Way would be to say, 179,620 as opposed to 180,000 great work that concludes the third section. Now let's jump onto the last one. 14. Section 4 Overview: here we are at the last section of the course. Good job making all the way here. We will finish by discussing the right timing, color schemes, product listing style and up selling. Let's get right into it. 15. Lesson 10: Timing Tactics: one would think that time when the price is shown doesn't really matter. But we will leave no stone unturned. Let's portray it is into scenarios. If the customer is shown the product followed by the price, it will make them think more emotionally. They will start to consider the benefits, how they like the product. And so and so if you switch it up and show the price before the product, they end up thinking about the money as the first thing asking themselves. Is it even what it do? I really want to spend this much similar. I am once again speaking in broad terms, but if you think about it, that's in space to experiment. If you are selling generally more expensive products such as the look, sewers, jewelry or cars, you don't want to shock the customer with that high price tag is the first thing. Your aim is probably to make them try and fall in love with the product First, do you woke emotion. You can leave the confrontation with the reality for later. On the other hand, if you're selling something super cheap, price is the selling point. You want to make your customer. Consider the benefits off the purchase at a later stage, if at all. Let's be honest here. How many times have you bought something completely unnecessary Only because of the low price? I definitely have to sum it all up with expensive products. Show the item first and then an arrow pointing in the price, and we cheaper or more practical ones show the price first, followed by an arrow pointing in the product. See you at the next lesson. 16. Lesson 11: Red, Black and Green: I have many endless conversations about color schemes in the bus, unbearably many more in the future. You may have heard the opinion that the red button gets more clicks but s with anything else. This doesn't apply in all cases. This few factors to consider target audience, layout and color scheme of the whole website or even the product itself. Imagine a website that all red red font photos in red tones, red buffers with a button in the red color that says by now stand out more in such an environment, Then, compared to a green one saying the same thing, you guessed it right when it comes to color of the price. Numerous studies have found that the humans react to it. Being in red better than if it's in black or red color is perceived as an opportunity to save and, as a limited offered that needs action. Now there's many applications red far red button red arrow pointing in the Bryce, circling the new price and striking through the old one in red and so many more with one of my website, which is in brown and yellow tones. Anything red works like Wonder and stands out really strong about the rest. So have a thing. What color? It would stand out with your business and tested out. 17. Lesson 12: Ascending or Descending: Quite often you will find yourself having to display the products in a list. If it's a restaurant menu or an issue or cat Loke, customers will automatically start to visually compare items based on their position. Bebear off this dangerous territory, you can either gain a lot or lose a lot. This psychological phenomenon combines the correlation off products based on their position in the space and individual quality. Let's look at it from a practical point of view in the list of our products are listed vertically, the customer sees the top product is the first. The first few products and the top serve as a reference point for the rest. You can use this in your favor by putting the most expensive products at the top. Customers will ultimately use these as a reference point, which will ultimately influenced their decision and price sensitivity. At the same time, this customer will recognize declining quality off the products. Naturally, they will think that the products position at the bottom part of this least are off a lesser quality. They will then pick from the first few products and that off the list since they want to avoid the low quality. Once both of these facts can help you to boost your average order value, let's look it in this simple example from a real live experiment. Imagine ashamed with for team products all listed under each other 1st 3 from the traveled before dollars than one at five another. It six, another four at seven, the next spirit eight and the last two at the bottom at nine and 10. This would be an incorrect way to display them because most expensive ones are at the bottom and the reference is created from the cheapest ones priced $4 it makes the customer think that differed it. Down they go, the more they have to pay Coreg Way would be to reverse the order. So you start with the one on top priced at $10 followed by one at nine another to a date for its seven. And so and so until you have the lowest price at the bottom. This makes it a pretty like the product quality is lover at the bottom. How off the list and the customer will automatically pick the ones at the top. In this experiment, the average order value was 5% higher with the list starting with high prices. This may not seem like a lot, but over one year of sales could amount to a significant boost in revenue. This is another strategy to consider. If you are selling multiple products as compared to one or two in the last lesson, I'll show a suitable method to use when upsetting. 18. Lesson 13: Upselling Similar Items: you have probably tried these before up selling similar products to the one customer has just bought or it's about to buy. Sure, it's always what try offering the discounts or product bundle deals. But how do you make them by very similar products that may differ only in color, for example, easily change their price. Paradoxically, if the price stays the same, customers interest won't be as big. The thing is, if people say two similar products with the same price, it's hard for them to find any difference or benefit. And this leads to a decision. Paralysis. If presses adjusted even slightly, the comparison and eventual decision became much easier. If your offer includes two similar products, just change the price slightly. Let's assume you're trying to sell beer. Lucky you. Anyway. Your ad displays two bottles or beer next to each other. The only difference being the color off the label instead of pricing them at 50 cents, made 1 45 cents and the other 55 cents total prize is the same as if they were priced at 50 cents. But you have just significantly hiding the chance that the customer will get both chased that. Congratulations. You've made it all the way through the course. I'd like to reflect on the whole course in the afterwards, so don't go just yet. 19. Bonus Lesson: 01 more thing. I couldn't resist that to give you a little bones lesson since you made it all the way here . So when is it the best time to display discounts in percentage and when in monetary value? Here's one simple technique. To visually increase the attractiveness of discounting customers eyes. If the press is below $100 despite the discounting person teach if the price is above 100 display, the discount is a monetary value. This is because showing a monitor this council prices below 100 doesn't appear s impressive , since the amount wouldn't be so high. This applies ing majority of the cases, since most discounts are usually around 10%. If you have ever giving 30 or more percent off, you might as well consider displaying in the dollars instead of percentage as we never think. It all depends on the particular case 20. Course Afterword: So here we have it. I hope you're taking away a bank full of knowledge. When I first stumbled upon these principles, it felt like I've just discovered the Holy Grail. I'm sure that's a feeling, both of us. Sure. Now, hopefully, psychology marketing is such an interesting topic. I find it very exciting. To be able to uncover these tactics. Makes you want to learn even more, doesn't it? Hopefully it's contagious and you are on the same boat now. One last thing I can recommend for you is to come back to this course in a few weeks time and to refresh your newly cane skills so you can reflect on the strategies you've put into action. Repeating is the key to mastering any new skill if he's dancing, bicycle riding or education. And don't forget, knowledge is just one side of the coin. Now go out into the world and put these principles into action. If you have any questions over, like to just coming with me, please get in touch with a social media or my website. Thanks so much again and have a great day. Hopefully, I'll see you at the next course