Mark Anderson, FloristWare founder and developer, recently reviewed subtle tweaks for more effective pricing during “Mother’s Day Pricing for Profits,” a 30-minute webinar that’s free to Society of American Florists members.
Florists looking to drum up sales and increase average transactions in the final stretch before Mother’s Day may want to look at how precisely they are pricing items.
“Subtle tweaks to pricing can have big impact on profits,” said Mark Anderson, FloristWare founder and developer, who studies pricing models and writes about them for Business.com. Anderson recently reviewed those “subtle tweaks” during “Mother’s Day Pricing for Profits,” a 30-minute webinar that’s free to Society of American Florists members.
The charms of charm pricing: For price-sensitive customers, use charm pricing (prices that end in a “9”). “There is a tendency in the flower business to avoid charm pricing”—in favor of round pricing, which ends with a “0”— “because we think charm pricing is tacky,” Anderson said. Order-gathers and direct shippers, however, understand that charm pricing works on customers hunting for a deal. “A charm price almost always outsells a round price, even when the charm price is higher,” he said.
The run-down on round pricing: To brand a product or brand as ultra-premium, use round pricing. “If you are that exclusive, high-end shop that everyone wants to be, with customers that don’t care about price, then round pricing is probably already part of your mystique and charm pricing will undermine it,” Anderson said. (One caveat: When discounting items, even exclusive brands will often turn to charm pricing — then, “the magic of charm pricing is too powerful to ignore,” Anderson said.)
The importance of qualifiers. The words “just” and “small” can do wonders for sales. “Research shows that changing the message to ‘a small delivery fee or ‘just $10’ increases sales,’” Anderson said. “This can be used anywhere,” and any time you’re dealing with a customer concerned about price (e.g. “Our Mother’s Day arrangements start at just…”)
Look for more insight from Anderson — including his thoughts on anchor pricing, bundling and express pricing, in this week’s issue of Sales Wake Up.
Can’t wait that long for his practical tips? Check out the webinar or download the presentation pdf.
Want to hear even more pricing strategies from Anderson — in person? Come to SAF Maui 2016, where Anderson will be a featured speaker. Get a sneak preview of some of the program topics, here.
