The Science of Pricing and The Cat

I am reminded of Garfield the orange cartoon cat when I read this piece on pricing.

Garfield, as you know, is a rather fleshy and fat cat. (Which reminds me of another fat cat and this one’s ours. Margaret’s a fat one too, similar to Garfield.)

Meet Margaret, our cat!

Garfield used to say that fatness or thinness is all relative. Stand with a bunch of fatter cats and he doesn’t look overly opulent. Stand with a bunch of thin cats and he looks positively obese!

And it seems the same goes for pricing.

what is your price?

Price Is The Only Factor?

Consumers will look at the price first, no matter what product or service you sell. The art of pricing is a delicate matter sometimes. Price it too high and consumers will not buy. Price it too cheap and consumers think it is of low value!

But here’s what’s interesting: in-store displays have an impact on how your products are perceived in terms of price.

The article goes to say that, “Consumers tend to perceive products as more expensive when they are grouped with expensive item – and less expensive when grouped with inexpensive ones”.

Not Unless You Help Consumers Discriminate

But it also goes to say that “marketers can help consumers form more accurate perceptions of prices by helping them create a “discriminating” mindset.”

A discriminating mindset is one where we as marketers help consumers understand the unique-ness of the product they are thinking of buying.

This means that even if your product is more expensive, consumers may still buy it even if it appears side by side with other expensive products.

What’s Your Value?

All this happens if you can let the consumer know how special or unique that product is! If there are no clear differences between products, price will be the main differentiator and it will all boil down to price and price only.

If you can demonstrate to consumers that your product can be judged not only by price alone, consumers will consider these other factors!

This is what we at Redbox Studio always advice clients when we help clients market using their websites. Of course pricing is important but what is more important than pricing is the value you can convey to your customers so that they won’t choose you just because you are the cheapest service or have the cheapest products.

And how do you show value?

When you can be genuinely differentiated!

If you are part of the crowd, the same-old, same-old, consumers won’t pick you, that’s for sure.

That is also one of our philosophies too. We’ve stated this before in our talks and we’ve said this before: if you are looking for the cheapest web design firm, don’t look for us. You can google plenty others.

But if you want a web design firm that can:

* advise you professionally (with brains and understands marketing)

* write and design for communicative purposes

* be a long-term professional web partner as you grow your business

* help you increase your business via your website

then we can work with you.

As it is, we do not simply accept clients. We only want clients who understand that we are here to help them. This is our value proposition.

(Also, we work with businesses which do not go against our principles either because we want to sleep well at night. Yes, we have a conscience.)

Now go and read “How consumers perceive pricing“!

Final Thoughts…

But also make sure what you say is authentic because inauthenticity is easier than ever to spot now, thanks to social media. If you make a false claim, it will be exposed if you are not careful. Don’t undermine your brand.

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