Psychological Pricing

[New Perspective studio]

I think milk and bread go at the back because most people have to get it anyway so why not have you walk the store and see other products...twice.
Sure everybody knows this one, most stores keep their temperatures at about 21 - 23C
- People tend to buy more when they feel more comfortable.
- Also if it's cold or scorching outside you will stay there a little longer.
- This has a double impact you are more likely to buy and a store full of people actually sells more than an empty one.
This plays again upon the sense of urgency to get something because it might run out, also makes you believe there a good deal here.
Ever wonder why the queuing issue is never solved? Seeing a queue get bigger makes you impulse buy to get back quickly so you spend less time calculating what is the better price and just get what seems like the better price which in most cases isn't or what's closest.
- Also again seeing a big queue makes most people think there are deals here, I mustn't miss out.
Rounded numbers 499 instead of 493 perform better.
Retailers control the pricing of brands that sell in their shop for the most part. It makes it easy for them to create an In-house brand that can compete and seem like the better DEAL while still making a profit.

[adrianh]

Retailers control the pricing of brands that sell in their shop for the most part. It makes it easy for them to create an In-house brand that can compete and seem like the better DEAL while still making a profit.

Not only do they create in-house brands they also have large companies create models just for them. Companies like HiFi Corp and Incredible connection often sell branded computers with slightly different model numbers / EAN13 codes so that you can't compare prices directly.

Our local hardware shop chain often advertises Bosch machines on special that, on closer inspection, have slightly different models numbers with vastly inferior specifications. These products are sold at slightly lower prices than their proper counterparts making it seem as if you are buying the proper tool at a discount. Things like 1500W vs 1S00W (which in the fine print is a 1200W machine)

Another thing that gets my goat is computer companies that show desktop computers with screen, keyboard, mouse etc and even put those things in the specs. Then there is a tiny little disclaimer in an obscure corner saying that the screen, keyboard and mouse and operating system are not included in the price.

[adrianh]

I saw this at Pick and ROB-YOU today