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When trading, you need to have a business strategy. Pricing strategy is one of the crucial factors that help increase sales and directly affect your business performance.It is impossible not to mention American retailers such as 7 Eleven, Circle K, Walmart when it comes to pricing strategy. So what can we learn from them?<h2 style="text-align:justify;">Pricing Strategy #1: Anchor Effect</h2><blockquote>Anchor effect is when people often tend to rely on the information given first to compare and make decisions.</blockquote>For example, have you ever gone to a fast-food restaurant? When you buy fried chicken or sandwiches at fast-food chains such as KFC, McDonald's, Burger King, you will often get "upselling" a small cup of Coke / Pepsi at 15,000 VND. However, if you pay attention, you will see that the salesman never forgets to ask if you want to upgrade to a larger cup for 17,000 VND. It means that just an extra payment of 2,000 VND and you have a double-size glass of coke, and customers rarely say no.Another story about this Anchor effect is that there are 2 food outlets on the same street, but A's sales are always higher than B's. And A's secret is to offer alternatives for the customers. Instead of asking: "Would you like more eggs?" like store B, store A's staff will ask: "Do you add 1 egg or 2 eggs?" The customer will answer "yes" or "no" for the first question, so averagely, store B only sells 50% of the eggs. However, when the choice offered is "1" or "2" eggs for the second question, few customers choose not to eat eggs. With just one sentence, seller A "anchored" the decision in the customer's mind, significantly increasing sales.<figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/3fc9fbbc-1746-44de-9591-ebaeac6323b7" alt="Anchor effect in business helps guide consumer choice"><figcaption>Anchor effect in business helps guide consumer choice</figcaption></figure><h2 style="text-align:justify;">Price Strategy #2: The Decoy Effect</h2><blockquote>Usually, expert bird traps train a bird to be very skilled to fool its fellows. When other birds see this "bird of prey" peacefully sitting in one place and eating food, they will instinctively swoop down and be trapped.The Decoy effect here is similar. This effect is also known as the Asymmetric dominance effect.</blockquote>Business people in valuation often use this effect. This affect means you "seduce" the customer to the exact target products/ services you want to sell, but the customer still feels very happy.For instance, an iPhone model typically comes in three different memory options: 16GB, 64GB, and 128GB. The 16GB version has too little capacity, so users tend to buy the 64GB version. However, each version is priced at $100 apart, so Apple has "pocketed" a good amount of money by increasing the memory capacity a bit.In addition, you can encounter this Decoy effect a lot in life. For example, if you ask a friend to borrow 1 million VND, there is a 50% chance they will refuse. Still, then you say: "It's okay to borrow 500,000 VND", then they will readily accept to lend you right away.<h2 style="text-align:justify;">Price Strategy #3: The Two Ladder Effect</h2>To talk about this effect, let's take an example like this: A man goes to a supermarket to buy soft drinks. There are 2 brands: A and B, which have the same product, but brand A costs 7 USD and brand B costs 12 USD for a pack of 6 bottles. At this time, customers will choose brand A..... if there is no THIRD choice. Besides the option of a 6-bottle pack, brand B has a choice of a 9-bottle package for 14 USD. At this point, customers will quickly switch to brand B.A careful calculation can be seen that if buying batch 6 of brand A, each bottle of coke costs about 1.17 USD, and batch 9 of brand B will cost about 1.56 USD / bottle. Although the price per bottle of brand B is still slightly higher, why do consumers choose brand B? Because of the initial price difference between the two brands, customers will think brand B is high-end with better quality products than brand A. When there is a choice of 9 bottles, customers will quickly decide to buy brand B's product with the mind that they have just purchased a high-class product at an acceptable price.These pricing strategies are valuable marketing lessons that have been studied and succeeded by American retail giants. Many Vietnamese brands have also been thoroughly applying these rules in business to increase revenue. Try it out with your company and let Estuary know the results you get!<a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/">Estuary</a> is a digital transformation company that provides breakthrough business solutions for market promotion, product marketing and operations management through SalesTech and ERP.One of our SalesTech 4.0 solutions is the <a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/services/internal-working-system">Revenue Management System on the mobile application</a>, which have helped a glue manufacturing business:<ul><li style="text-align:justify;">Increase by 30% in sales</li><li style="text-align:justify;">Increase by 20% in the rate of successfully closed deals</li><li style="text-align:justify;">Increase by 34% in employee productivity</li></ul><a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/contact?msg=Request+Demo+Internal+Working+System&amp;service_id=3">CONTACT NOW FOR FREE SOLUTION CONSULTATION</a><figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/f26e700c-d6ce-4aad-8574-4a9caa3658cd" alt="Estuary Mobile App: Sales – Revenue Management Platform"><figcaption>Estuary Mobile App: Sales – Revenue Management Platform</figcaption></figure>

3 American-style pricing strategies help increase sales more than winning the lottery

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When trading, you need to have a business strategy. Pricing strategy is one of the crucial factors that help increase sales and directly affect your business performance.

3 "American-style" pricing strategies help increase sales more than winning the lottery

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