Mark Anderson of 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. https://staging.safnow.org/events-education/webinars/webblast-mothers-day-pricing-for-profits/
Here’s a scenario you may find yourself in lately: A price-sensitive customer asks about a standard Mother’s Day design. Does your sales team member offer an arrangement that is $49.99 or $49?
If you want the sale, you’re better off saying $49, according to Mark Anderson, FloristWare founder and developer, who studies pricing models and writes about them for Business.com.
“Simply put, more syllables comes across as more expensive,” he said, “ use the fewest possible syllables when expressing price.”
Anderson recently offered that advice and other “subtle tweaks” on April 27 during “Mother’s Day Pricing for Profits,” a 30-minute live webinar that’s now available via download for free to Society of American Florists members.
Other sales-boosting tips from the webinar include:
Go with variety. “Avoid showing multiple products at the same price,” on your website, store signage and promotional materials. “If prices are identical, consumers are less likely to buy than if they are even slightly different.” Price is “a huge part of the story” with any purchase, Anderson explained. “Most people will assume that the most expensive option is the best, that the least expensive is the least desirable, and that the middle is ‘safe,’” he added. “If prices are identical this information is missing, and the consumer is being asked to make a decision knowing only half the story.” He recommends showing three options; more than that and the consumer may feel overwhelmed.
Try out a bundle. Instead of separating delivery costs and add-on products (e.g. cards, balloons), try “bundling” them with the arrangement. For some customers, that hits a sweet spot of perceived value and convenience. “The people that gravitate towards bundles will jump at it,” Anderson said. Remember: Listening is key. “If starts asking about price, they are more likely a comparison shopper and you should go a la carte, starting with flowers and then progressively disclose additional costs (delivery, etc.) deeper into the order process,” he said. One caveat: While you can show bundles on your website, never do away with a la carte items—you need those to be competitive with order gatherers and national companies.
Watch your wording. 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…”)
For more insight from Anderson, including the pros and cons of charm and round pricing, check out the webinar or download the presentation pdf.
