Higher-priced items are often seen as leaders in quality, meaning the customer may have more confidence in your product or service
I know what you're thinking. How can INCREASING my prices make MORE sales? Doesn't everyone want a discount? Won't lowering my prices entice more people to buy? Not necessarily.
The social scientist Robert Cialdini states that when a potential customer can't assess the quality of a product or service, they will sometimes use price as a stand-in for quality.
Basically, the higher priced items will be seen as better quality and leaders in quality in the market you're in, even if the customer has no idea of the actual quality of the product yet.
This theory makes sense. I think if anyone were looking for a particular item and found one for 99p, they would absolutely question whether the quality is going to be any good, specifically because of the lower price.
Then more often than not, they will opt for a similar item that's slightly higher in price. Just to be sure that they do get the quality they need.
In order to test this theory, you will simply want to increase your prices. By increasing your prices and also applying other digital marketing tactics to your business, there is a chance that your sales will not be affected and may even increase!
There's another reason that you might want to increase your prices, and that's due to under-valuing your products in the first place.
There are many reasons why we might undervalue ourselves and our products, particularly misreading the market itself and thinking a product is worth less than what it is.
Nobody wants to undervalue themselves and their hard work. If you don't trust in the quality of your product, then customers are less likely to trust in it too.
So, this is another reason why you might want to increase your prices and may actually see more sales than less. Customers will see that you're charging what you're owed and what you deserve.
by Andy Oct 2022