1. Same-Price Selling Technique A small shop in the UK was initially struggling with poor business. One day, the owner had an idea: for just one pound, customers could choose any item in the store (all items were priced the same). This tapped into people's curiosity. Although some prices were slightly above market rates, it attracted a large number of customers, and sales surpassed those of nearby department stores. Abroad, a popular variation is same-price selling by category, such as small shops having 1-cent or 1-yuan counters, and larger stores having 10-yuan, 50-yuan, or 100-yuan counters. Bargaining can be tedious, and fixed pricing is simple. Many such stores have emerged domestically, but according to my observations, business is not great. In essence, strategies or tricks only work to a certain extent; the key is to offer genuine value at fair prices.

2. Price Segmentation Nothing is more sensitive to customers than price, as it represents the money in their pockets. You want customers to feel they are spending only a small amount, not a large sum. Price segmentation is a psychological tactic. When sellers set prices using this technique, it creates a perception of cheapness. It includes two forms:

  1. Quote in smaller units. For example, tea at 10 yuan per kilogram can be quoted as 0.5 yuan per 50 grams; rice at 1000 yuan per ton as 1 yuan per kilogram. Paris Metro ads say: "For just 30 francs, 2 million travelers can see your ad."
  2. Compare with smaller unit prices. For example, "Skip one cigarette a day, and you can subscribe to a newspaper daily." Or "This refrigerator costs only 0.2 yuan per day in electricity, just enough for an ice pop!" Remember to use smaller units when quoting prices.

3. Premium Pricing Only unique products can command unique prices. Premium pricing means setting prices significantly above cost when launching a new product, allowing the company to earn substantial profits in the short term, then adjusting based on market changes. For instance, a store stocked a small batch of mid-to-high-end women's coats at a cost of 580 yuan each. Seeing the quality materials, workmanship, and novel colors and styles not yet available locally, they priced them at 1280 yuan each and sold out quickly. If your product is popular and you are the only one in the market, you can charge a higher price. However, this situation rarely lasts long, as competitors may imitate. To maintain high prices, you must continuously introduce unique products.

4. Low Pricing "Cheap goods are not good; good goods are not cheap" is a long-standing saying. Your task is to overcome this prejudice. This strategy sets prices as low as possible to quickly gain consumer acceptance and market leadership. Low profits can deter competitors, allowing long-term market dominance. It suits large enterprises with substantial capital. For manufacturers, low prices open markets, then expand production to reduce costs. For retailers, lower prices reduce per-item profit but increase sales volume, leading to higher overall profits. When using low pricing, note: (1) Use cautiously for high-end products; (2) Use cautiously for consumers seeking high consumption.

5. Safe Pricing Selling a 10-yuan item for 20 yuan may seem profitable but could lose a customer. For general products, too high a price hinders market entry, while too low may cause losses. The safest is to set moderate prices that consumers can afford and distributors can promote. Safe pricing typically involves cost plus normal profit. For example, if jeans cost 80 yuan and the industry average profit is 20 yuan per pair, the safe price is 100 yuan. However, if the brand is not well-known, even safe pricing may not be safe. Luxury-seeking consumers may see your product as low-end, while bargain hunters may find it too expensive, pleasing neither.

6. Non-Integer Pricing "A miss is as good as a mile." Setting retail prices with odd endings, known as "non-integer pricing," is highly effective in stimulating purchase desire. The rationale is that consumers psychologically perceive odd prices as lower than integer prices. One summer, a daily goods store stocked items at 1 yuan each, but sales were sluggish. They decided to reduce the price by only 2 cents to 0.98 yuan. Surprisingly, this tiny difference changed everything; customers flocked, and the stock sold out quickly. The clerk sighed, "Just 2 cents!" Practice shows that non-integer pricing indeed triggers positive psychological responses and yields better results, as it conveys different information to consumers.

7. Integer Pricing "A strong wind reveals the strength of grass; a good horse needs a good saddle." An American car manufacturer once publicly declared they would build a large luxury car for the world's richest people. This car had six wheels, was as long as two Cadillacs, featured a bar and bath, and was priced at 1 million dollars. Why an integer? Because buyers of high-end luxury goods often desire to display their status, wealth, and generosity. The 1 million dollar price tag caters to that psychology. For high-end and durable goods, integer pricing gives a sense of "you get what you pay for," enhancing the product's image.

8. Arc-Shaped Number Pricing "8" and "prosperity" may be unrelated, but it's better to believe than not. Meeting consumers' psychological needs is always right. Market surveys show that in thriving stores and supermarkets, the digits used in pricing, in order of frequency, are 5, 8, 0, 3, 6, 9, 2, 4, 7, 1. This is not accidental but rooted in consumer psychology. Digits with curved lines, like 5, 8, 0, 3, 6, seem less stimulating and are more acceptable, while straight-line digits like 1, 7, 4 are less popular. Thus, 8 and 5 appear often, while 1, 4, and 7 appear less. In China, many people like 8 for its association with wealth; 4 is avoided due to its homophone with "death"; 7 is often considered unlucky; 6 is favored because of the saying "liù liù dà shùn" (everything goes smoothly).

9. Tiered Pricing "Price first, product later; remember to price according to the customer's wallet." French-Chinese entrepreneur Lin Changheng was skilled at pricing based on customers' purchasing power. For example, his belts were priced according to French income levels: low-income at around 50 francs, using ordinary cowhide; high-income at 500-800 francs, using precious materials like python and crocodile skin, produced in smaller quantities; some exclusive items had no price ceiling, as some customers would buy regardless of price if they liked it. Mid-range belts were priced at 200-300 francs. The key is whether customers accept the price; if they do, even high prices are fine.

10. Adjustment Pricing Good adjustments act like lubricant, ensuring smooth sales for fast-moving, steady, and slow-moving products. In Germany, the Osten retail company in Weidemond successfully sold any product. For example, when Osten launched 10,000 sets of underwear-as-outerwear fashion, priced 4.5-6.2 times higher than ordinary underwear, sales were strong because it was novel and attractive. However, by May 1988, when major German cities had similar products, Osten slashed prices to just slightly above ordinary underwear, and they sold out again. Eight months later, when the trend faded, Osten sold at "cost price," less than 60% of ordinary underwear, and still sold well. Companies must constantly forecast supply and demand changes.

11. Habitual Pricing "Seek change within no change." Many products have established basic prices in the market, and these should not be easily raised. In China, matches were 2 cents per box for over 20 years. In 1984, when Hunan province raised the price to 3 cents, locals preferred buying travel-sized matches at 2 cents from other provinces. If production costs rise but prices cannot, flexible solutions include using cheaper raw materials or reducing quantity, like making smaller ice pops or fewer matches per box. Of course, habitual prices are not immutable; today's match prices have long exceeded 2 cents. The key is that smart merchants find ways to change within the unchanged.

12. Clear Pricing Protecting customers' interests is more important than saving face. One day, the Xinhua Shoe Company on Yanping North Road hung a huge sign saying "Fixed Price." This was risky at the time, as other stores typically marked up prices by about double to allow for discounts. After implementing fixed pricing, many customers liked the shoes but felt they were overpaying, so potential deals fell through. The owner believed customers would compare prices and return, so he persisted. Indeed, soon the store was bustling. Customers who bought at negotiable stores found that even after discounts, prices were often higher than Xinhua's, so they returned. The disadvantage of fixed pricing is inflexibility, but its advantage is simplicity and a sense of high credibility.

13. Customer-Determined Pricing Traditionally, sellers set prices and buyers bargain. Can it be reversed? For example, restaurant prices are always set by the owner, and customers pay according to the menu. But in Pittsburgh, USA, there is a "Milio Family Restaurant" where the menu lists only dish names without prices. Customers pay based on their satisfaction; the restaurant accepts any amount, even nothing if unsatisfied. In reality, most customers pay reasonably, and some even pay more. Of course, a few pay little or nothing after a hearty meal, but they are rare. Currently, letting customers set prices is not new in China; some cities have such restaurants, but they have not been very successful.

-END-

Featured Content Reply with the following keywords to search and read related articles: Sales Supervisor, Second-Tier Management, Regional Manager, Distributor Management, New Channels, City Manager, Competition, 2015, Manufacturer-Dealer Game, Product Slow Sales, Terminal Visit Management, Route Management, Deep Distribution, Internal Management, Sales Skills, Profit Improvement, Recruitment, Distribution, Daily Management, Team Motivation, Trade Promotion, Sales Misconceptions, New Product Launch, Township Market, New Product Pricing, Sales Target Achievement, Closing Deals, Market Visit Inspection, Baijiu, Beer, Sales Increase, Agency Products, Channel Crossing, KA, Terminal Merchandising, New Market, Market Operation, Learning, Book Recommendations, Inventory Management, New Salespeople, Consumer Promotion, Execution, Old Products, Expired Product Handling, Model Market, Franchise, New Media, Distributor Development, Performance Appraisal, Assessment, Annual Planning, Shopping Guide, Morning Meeting, Display, Transformation, Stock Pressure, Festivals, Distributor Cost Control, Channel Operation, Marketing Theory and Laws, Brand Truth, Order Meeting, Team Management, Training, Debriefing, Debriefing Report.