The key pros and cons of pricing psychology

In this complicated economy that we find ourselves in today, within the fierce competition there are intense price battles, battles that often involve the use of strategic planning and a particular pricing strategy, for example psychological pricing.

All pricing strategies have advantages and disadvantages, likewise, nothing is perfect. Some of the main pros and cons of using psychological pricing are outlined below.

Let’s start with the cons first, okay? Consider the meaning behind psychological pricing, it aims to play “tricks” on the minds of human beings, to trick us into believing something that is not equivalent to their true selves. The single word is perception.

By exploiting psychology, marketers are creating a different perception of something for us, therefore what we think it is, is what we believe. The downside to this is… as a typical consumer who is likely to fall for this pricing strategy, he may barely realize that he was scammed and therefore won’t buy that particular deal again.

What can be learned from this is that all pricing strategies must be carefully planned to avoid crossing the line which can cause side effects.

Another disadvantage of using the concept of psychological pricing is that you are not alone, you are simply not the first to use this tactic in economics. The fact is, when everyone else in your competition uses the same trick as you, it’s basically communism. The hack will degrade because most are doing the exact same thing.

From this, understand that you need to stand out from the crowd and yearn for some originality in your pricing campaigns, be unique.

Everything in the world has advantages and disadvantages. Using a pricing strategy will not only obviously increase your sales and generate more profit, but it also has other key benefits.

Have you ever been frustrated by the unexpected results of a plan? Any plan? In fact, no plan in the world is error-free, and all plan implementers are often concerned about possible outcomes and unfavorable side effects. However, in the psychology of pricing, minimal attention is required, as such pricing tactics are directed at human beings, and I assume that human beings are the only buyers in the world.

Having said that, there is certainly no area for failure in terms of using psychology in pricing, but only the effectiveness and positive results you are getting that require serious effort and work, in other words, the amount of work determine your rewards. However, split testing is the best option.