What can you learn from supermarkets about pricing your jewelry?
There is no better place to study consumer buying habits than the aisles of supermarkets, where consumers have quite literally thousands of choices in a single store.
One of the things that supermarkets know is that little things make a big difference.
And that applies to pricing. $49.99 is only a penny less than $50. But psychologically, consumers experience that little difference as major, so supermarkets price nearly everything using this “sub-zero” method. Round numbers seem to scare people!
A friend of mine who is in the car business told me the same thing. There are certain psychological barriers to buying, he explained, and they tend to be “plateau” prices, so he tries to price his cars at just below those plateaus.
What does that mean for you, as a jewelry-seller?
Take that $40 pair of earrings and make them $39.95.
The $50 bracelet? Can you say “$49.99”?
And that $85 necklace? How about slashing the price down to $84.95?
It’s all about the psychology of pricing it right. And the biggest “markets” in the world have helped us figure out how to do it.