How much to charge, and how to display your prices is always a tricky call for Magento store owners. The closer you look, the more involved the question becomes too, as there’s a whole psychology behind pricing and communication. It’s just not as simple as people wanting to buy cheaper products. Let’s look at some basics.
Where you’re dealing with luxury products, statistics show that you’ll probably sell greater volumes if you don’t display the prices. If there is no competition against you in the solid gold mousemat market, you probably won’t need to demonstrate how cost-effective you are. In fact, in luxury goods, underlining your cut-price credentials might even be seen to detract from the aspirational value of your product. At the very least, you could remove the currency symbol and just provide a number. That works well for some luxury brands.
For the rest of us – those dealing in non-luxury products – try using larger and smaller font sizes to demonstrate a cut-price offer. If you have the old and new prices alongside each other you’ll show at a glance what the saving is. Place your latest prices on the right side of the page rather than the left, as people read from left to write. And the colour red is intuitively a signal to act quickly, so placing your colours in red will, in theory, encourage sales. These quick formatting changes could make all the difference.
When choosing your price points, research shows that ending it in a 7 usually gives the perception of a much better bargain than a 9 or a 0 for online shoppers. So pricing at £9.97 could well create far more eCommerce conversions than going with £10 or £9.99, or even £9.96.
Make sure the price is right at your Magento Store. Strategic marketing changes like these will cost you almost nothing to implement but could transform your sales figures.