Most marketers have learned the basics of pricing strategy in their business classes—cost-plus pricing, penetrative pricing, premium pricing, price skimming, and the like.
Each was a solid theory on how to manage the tricky question of pricing one's wares in varying market conditions. They worked well, too, at a time when prices were not compared with the click of a button or the swipe of a finger.
Pricing has moved with the times
Smartphones, tablets, even desktops have forced marketers to move on from age-old pricing models. They have had to dig deeper into buyers' thought process to understand what persuades buyers.
It's not enough to be the cheapest anymore. Your consumers need to think they're getting an awesome deal by buying your product. That "deal" might be in straight-out monetary terms, or based on prestige-of-ownership or the fear of missing out—or a variety of hidden persuaders.
Sometimes factors as innocuous as the font size of the price tag or the color in which the price is mentioned, or even the presence/absence of the dollar sign, can mean the difference between a sale and a missed opportunity.
Pricing tools (like Wiser) are now widely used to test the impact of minute price variations on consumer demand and conversions. Analyzing how users respond to various elements of a pricing strategy helps brands zero in on the best combination that works for the consumer and brand alike.
This article will explore some creative ways of pricing products for the digital age, backed by some sound research and practical applications.