Amidst the notion of most people, selling is not always a piece of cake. Believe it or not, there is an art when selling, and if a salesperson can put it to in action, great things can happen.
Pricing strategy is one of the many magic wonders in the art of selling. When utilized and mastered properly, one can succeed even in the most competitive marketplace.
Why is this important? Pricing strategies, more than enticing the customer to buy, can help them decide better whether or not your price matches the value they are after.
Here are 10 Pricing Strategies you can utilize:
Boost Product Effect
When introducing promotional packages, it is beneficial if you set a decoy towards nudging a customer to choose one product that has been redundantly introduced. For instance, if you are selling three properties to a client, one condo near the client’s workplace, another a near the client’s workplace plus at the heart of the city, and another near the client’s workplace, at the heart of the city plus is now at 20% discount; naturally, the client is nudged to choose the third property as it has all the convenience, plus big savings they can get.
Different Tag Price Effect
According to psychology, when two items are priced the same, consumers’ tendencies are to defer their decisions rather than buying the product. So, when selling two properties with the same amenities, it is best to price one differently from the other to increase the chances of a sale.
Bargain Price Effect
Consumers will always have a subconscious tendency to look for bargains. So, when a client is given the first offer of a $200,000 valued real estate property against a $250,000 property, both with the same features and amenities, naturally, the client will choose the first one over the other.
Law of Supply and Demand
When introducing a property, it is best to highlight that the property is being considered by many to nudge the client to consider or buy it immediately. Otherwise, the property might be sold to someone else.
Middle Product Syndrome
When you run a real estate online website, it is best to highlight your most expensive property as a middle product against two other properties on the website. Consumers will always have the tendency to choose the middle product, regardless of the price and the features presented.
Consumers respond well to a dollar value as compared to a percentage amount. So when selling a property, tell them how much their discount will be, either $10,000 or more, rather than telling them that they will save 10% on it.
When customers are presented with two or more products, they will decide whether a property is a gain or loss based on the prices being offered. The lower the price with the same features, the better for them.
People will always buy because others are also buying. Make sure that you highlight that many are interested in buying to encourage your potential client to actually buy.
Negative vs Positive Effect
It is natural that consumers will repel any negative feature. So when selling a property, compare it to another property that has a few negative features so the customer understands the variation in price.
When the demand is high, prices should peak at the highest level, but when the demand is low, offer discounts to boost the demand higher again.
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