Fundamentally, customers decide whether to purchase based on perceived value. Optimising your pricing strategy means influencing the perceived value of your attraction / venue and your unique selling points. If you understand some core psychological triggers then you can use these to tailor your approach to meet customer expectations.
Here are key techniques to refine your pricing strategy and boost sales.
Focus on Perceived Value
Customers evaluate the value of your offering based on prior experiences and what they paid for similar products or services.
- Comparison to Familiar Experiences: If you are hosting an open-air movie screening, a customer may compare your price with a typical cinema ticket. If your event offers a unique or premium experience, you must showcase reasons and proof to justify a higher price.
- Showcasing Value: Use compelling content, testimonials, or exclusive features to emphasise why your offering is worth more. For example, a heritage site could highlight the rare, behind-the-scenes access included in a VIP ticket.
Key Pricing Techniques
Understanding and applying psychological pricing strategies can further optimise your approach.
1. Anchoring
Customers tend to compare all subsequent prices to the first price they see. This “anchor” becomes the benchmark for perceived value.
- Use Carefully: Set the first price point strategically to frame customer expectations. For example, present a premium experience first, so standard options feel like better value.
- Example: A guided tour could be displayed as the default option, with self-guided tickets appearing as a budget alternative.
- How LOOP Helps: LOOP makes it easy to present anchor prices dynamically using its flexible content blocks, ensuring the first price your customers see is always impactful.
2. Decoy Pricing
Introducing a higher-value third option can make the other two options appear better value in comparison.
- How It Works: Present three options where the middle option is the most attractive, balancing value and price.
- Example: Offer a basic ticket, a “premium” ticket with some upgrades, and a “VIP” ticket priced significantly higher. The premium ticket becomes the obvious choice for most customers.
- How LOOP Helps: With LOOP’s decoy pricing layouts, you can easily design tiered pricing displays that visually highlight the best-value option, helping guide customers’ decisions.
3. Pricing Ladder
Appeal to different budgets with a structured pricing ladder that encourages customers to upgrade incrementally.
- Subtle Upgrades: Offer small, incremental price differences between tiers, making upgrades feel like minimal additional expense for greater value.
- Example: A family attraction could offer tickets at three levels: standard entry, entry with meal vouchers, and an all-inclusive package including priority access and souvenirs. Each level should feel like a small step up in cost but a significant jump in value.
- Inspiration from Apple: Consider how Apple encourages customers to pay slightly more for additional storage or the latest model. Small steps in pricing can lead to significant revenue increases.
- How LOOP Helps: LOOP’s dynamic listing and content blocks make it simple to present pricing ladders that clearly communicate incremental upgrades, making it easier for customers to see value at every level.
Emotional and Rational Triggers
Customers’ purchasing decisions are influenced by a mix of emotional and rational factors.
- Emotional Triggers: Highlight aspects such as exclusivity, luxury, or the fear of missing out on a unique experience. For example, describe how a seasonal event creates a once-in-a-lifetime memory.
- Rational Triggers: Appeal to logical decision-making by demonstrating value for money, time-saving benefits, or practical advantages like bundled deals.
Crafting Your Pricing Story
To optimise your pricing:
- Set a Strategic Anchor: Decide the first price customers see and use it to frame their perception of value.
- Use Decoy Options: Introduce premium tiers to steer customers towards mid/higher-level options.
- Build a Pricing Ladder: Offer small but compelling upgrades to maximise customer spend.
- Communicate Perceived Value: Use clear, compelling messaging to justify your prices and upgrades.
- Optimise Your Systems: Try to use systems that help you upsell more experiences easily AFTER a customer has completed their main booking
Pricing do's and don'ts
- Try to make prices end in the same format (e.g. 9.95, 15.95 etc, rather than a mix of price endings)
- Try to offer packages to reflect different guest types and budgets
- Shift pricing to reflect different experiences and value levels throughout the year (e.g. a sunny August day at an outdoor attraction is a very different value proposition than a rainy day in October)
- Don't add in too many upsells
- Make sure upsells are relevant to the guest and aligned with their stage in the booking journey
- Don't be afraid to have a higher price VIP ticket as this helps anchor your main pricing
- Regularly run surveys and research to determine if you are leaving money on the table (if guests are willing to pay more)
By integrating these techniques, and leveraging LOOP’s tools for dynamic pricing presentation, you can optimise your pricing, boost perceived value, and maximise revenue while delivering exceptional experiences for your customers.
