A Simple Number Trick in Marketing
It’s just $12 per year. Will you purchase it?
Let’s consider a mobile application that will give you sports information. Or be it a small magazine that publishes recipes. And there’s a subscription fee for the service.
Let’s consider a subscription fee for this app — keep in mind, just publishing any one pricing; not together.
1) Subscription fee : $10 for an year.
Will you choose this plan? Are you ready to spend this? There are chances that the customers will think like $10 is too much for this simple magazine / application.
2) Subscription fee : $12 for an year.
When a customer hears this, he will do the math — $12 for an year — that means just $1 for a month — Oh yeah! That seems a pretty good deal!
What I learned:
When the price is a number that the user can simply relate to their monthly spending, they are easily convinced into buying it.
$12/year (or $24/year etc.) will relate to our monthly spending easier than that of $10/year pricing. There will be more people subscribing when the fee is $12/year than that of $10/year.
And, of-course, putting them together will make everyone choose the $10/year!
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