Pricing

Thanks Jeffery.

Welcome JC.

We don't set our prices or the way the pages are laid out on this site so it really is not all that useful.

Still cool though! Thanks for sharing.

i got through about halfway before i stopped listening. the ideas he has are theory and i picked the red over the green every time. smaller prices, location, etc, most of it made little sense.

45.00
44.99

i would chose the 45 every time. adding the cents never made any sense at all. they had one example where it said that

350,000
362,643.57 that this was the one people would choose? the one that's like 12,000 higher? i doubt it.

its cute how people think that by adding odd cents it looks lower, when i know for a fact i ignore the cents totally. walmart likes adding a .84 to make it seem lower than the usual .95. but what's funnier is when they say - we slashed prices, now it .81 or something silly like that.

the talk of making prices longer or shorter, by condensing fonts, sizes, locations, adding dollar signs, and so on... i kind of like to know where this guy got his research from.

i went back to glance at the rest:


"Strategy: Use Discounts Strategically

If not used properly, discounts can actually harm your business. In fact, some people suggest that you should never use discounts.

That advice is pretty extreme. You can use discounts…you just need to use them properly.

Where can you go wrong? If used too frequently (or too deeply), discounts can make people more price conscious moving forward. They’ll keep waiting for the next discount.

Discounts can also lower people’s internal reference price for your product, causing them to buy less in the future (because your price will seem too high).

Reducing the frequency and depth of your discounts can help. However, this section will give you a few additional tactics to maintain the strength of your discounts."

this part i agree with - don't have constant discounts... there is one store online that i know of that instead of fixing issues, they run sales all the time. people only buy when there is a sale.


the lower half of this is far more useful, because it covers strategy rather than blind guessing. i think its funny that at the bottom, they asked if we skipped over the entire thing because it would take too long. then offer a 15 min video covering the same stuff - that's a long video. i do wonder who this guy is, and has he tried his own observations to see if they really work in the real world. or did he compile the things stores already do and made a list out of it to seem smart.


---Mike Savad
MikeSavad.com

My brain is not working yet this morning has I haven't had enough coffee. As far as the video I didn't watch it and I scanned through the information he provides. For some a video they would retain more and for others reading they would retain more.

From Amazon.com concerning the author of the article:

"Nick Kolenda is renowned for his ability to influence people's thoughts. Using principles from cognitive psychology, he has crafted a revolutionary stage show demonstrating that unique ability, and his "mind reading" demonstrations have been seen by over a million people across the globe."

http://www.amazon.com/Nick-Kolenda/e/B0083HW4JW/ref=ntt_athr_dp_pel_1

Makes me wonder if magic, pain-relieving elixirs and linaments are sold after the shows.

Thank you excellent information!

another funny one is the shipping

$18 free shipping
$15 shipping $3.00

he chose the $15 one as the one people would choose. even though amazon has proved over and over that people will spend more to get free shipping. i chose the red one because i saw the word free in it.

if i was at an artshow, i would only laugh if i saw the .95 .99 at the end of the price.


---Mike Savad
MikeSavad.com

Mike,

if You think it will not work does not mean it will not work. It is the same thing when You say advertising does not manipulate You. Believe me, it does !
A whole professional branch is researching about this. Are they all wrong ?

I do not know all the points he is speaking about, but I have read a scientific article about the 9-rule some years ago. That's what I can REMEMBER:


The example 45.00/44.99 is not the most appropriate. The best results You get for changing first digits like 40.00/39.99 That is the reason why the effect of 1.00/0.99 is so important in food markets. Second part of the rule: do not write 0.99 use -.99 which looks more cheap.
Also very important is the changing from a 2 to a 1. This is a more psychological reason. The 1 is so much smaller/thinner that it must be much cheaper for our brain.


What does this mean for Your pricing on FAA ?

You have to look to the buyer's price of course, not to Your mark up.
You will rarely change the first digit. If You want 45 You won't change to 39.99 but one item is predestinated for this: the greeting cards !

i can only speak for myself, i round it all off anyway. and i don't think people are fooled by the price, more that they have to carry change back when they leave. just because "professionals" research it doesn't mean they are right. and basing something strictly on price, without taking in account the product itself, or what there was to compare too, the data may not be accurate anyway.

i doubt people are buying something because of the loose change on the end.

---Mike Savad
MikeSavad.com

@Mike that is the key you are speaking for yourself.

Others might gain some insight and others like you will move on because not everything fits into a nice neat little box or pattern. This is for each individual to decide for themselves and one reason I see no point in leaving my personal opinion though I will add that he has some good points and has linked to more information that each person can view and read for themselves.

Fascinating information. Thanks for posting, Jeffery.

We know we're being kind of scammed when milk is $4.99 a gallon or when they price a 2 liter cola at 99 cents. The worse is when the press announced gas haas fallen under $2 here when it was really $1.99 99/100ths. I don't even know if that's the right way to write that.

When I started here, I priced everything in whole dollars except for some reason my greeting cards. Not sure why I did that.

Jeffrey nice find. I can only apply some of it in this format. I would apply more if I could.

The MIT marketing gets into some of this stuff. They show a chart or two around price. The chart
is a scattering of buyers say around $2.99. A few will prefer 3 and some will prefer $2.98, but most
will opt for $2.99. The idea is to optimize things, not discuss what ONLY one person will do.

Anyway for several reasons I have upped my prices. The base price which shows first on prints is now $29.
The biggest two reasons I upped my prices are the quality of the prints FAA's Giclee prints are very high
quality, the other reason is my belief in my work.

MIT using scatter charts for a number ending in nine shows for example $29 v $28.99 v $30 etc.......again more people respond
to $29. The majority see it as closer to $20 than $30. I understood this with more clarity after watching your video and the
linked video.

It is always worth doing your homework with an open mind if you want to learn anything.

Dave

Fascinating information. Thanks for posting, Jeffery.

There are many artists (those producing works in oil, pastel, watercolor, etc.) who simply use a "what price will I take to part with it" strategy. There are others who just slap a very high price on a work of art just to see if there are any takers (knowing that high priced original art definitely gets attention), thus establishing a baseline for future sales. And, some will give away their original art because they received a nice compliment. Lots of original painters also base their prices by square inch, what they would make based on an hourly wage, based on their CV... all sorts of things.

The link you provided, Jeffrey, does give some great insight and guidance into how to properly display printed prices, irregardless of the bases for establishing those prices.

I'm sure this could be useful in many settings, but FAA isn't one of them. We can't magically make every single item end in .99 or .58 or whatever, because we have no control over final price. With dozens of possible variants per product it isn't doable.

Good point there, Joshua. And then if we're selling at fairs or shows, who wants to deal with actual change? Mostly pennies in this case.

Joshua,

You are almost completely right, except one place where it matters the most.

http://fineartamerica.com/art/all/david+bridburg/all

You will need all of that link

Dave

http://tinyurl.com/l7l2q9o

That might work better.

Dave

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