FloristWare founder and developer Mark Anderson studies pricing models and writes about them for Business.com. Mark presents The Power of Pricing, a special series of online short courses.
Episode 1: $49.99 or $50.00?
One Penny Makes A Huge Difference
The decision to use rounded vs “charm” prices (those ending in the number 9) is often made casually — based simply on what we think we like as consumers, or what we see elsewhere. However, it is an important decision with serious repercussions for your sales and brand.
Research shows that one penny can make a huge difference in the way consumers perceive your product, brand and value proposition. The latest research also shows how that one penny affects the way consumers experience and remember your product.
Click here for the PDF of the slides
Episode 2: Bundling
The Huge Upside to Selling Packages
About the time florists started leaving the bundled pricing model — by charging delivery and services separately — other industries, such as fast food, started embracing it by promoting combos or “value meals.” Now, research shows bundles increase perceived value and sales while lowering ordering costs.
You’ll learn:
- Why bundles appeal to consumers
- What bundles offer the seller
- How to price and sell bundles
Click here for the PDF of the slides
Episode 3: You Don’t Take Margin to the Bank
Some vendors, such as gas stations, do not offer volume discounts, while others discount volume purchases by as much as 90 percent. What is the formula, and where do flowers fit in?
You’ll learn:
- How and when lower margins mean greater profits
- How to avoid cannibalizing higher margin full-price sales
Click here for the PDF of the slides
