The 5 ways to communicate your price to buyers

When a buyer visits your store or your website to shop around and potentially buy from you, they are presented with the price of the product… and the reality that they will have to part with some of their hard-earned money to own your product.

You could just slap a price tag on the item (some businesses choose to do just that) but how will your customers know if what they are going to buy is worth the dollar figure on the price tag? For that reason, you should never just quote a price or put a price tag on an item by itself. Your price should always be communicated in a larger context. Here are 5 ways that you can communicate price to your buyers:


Instead of just naming your price, name your price but explain what the customer gets out of that price. These are the internal factors — the qualities intrinsic to the product or service itself that that customer is also receiving when they buy the product from you.

For example, internal factors include:

  • Value received
  • ROI
  • Benefits
  • Luxury (in the case of luxury, the higher price might be perceived as more attractive)
  • Exclusivity


Another way to express price is to compare it to external factors. Instead of qualities that are intrinsic to the product or service, these are qualities that are connected to something else — such as another product you sell or even a competitor’s product.

For example, you might use the following external factors:

  • Competitors’ prices
  • Alternates
  • Cost of doing nothing
  • Normal higher price


The price that you are charging can be made to appear smaller by dividing the price across some other metric. For example, if you sell a product that can be used over and over and has an average usage of 100 times then you can set the price of your product and communicate it as only costing 1/100th of the price per usage. Or if you sell fresh fruit, you might sell them in packages of a dozen for only $1.00 per fruit. (So the purchase is actually $12.00).

For example, you might use the following metrics:

  • Time
  • Usage
  • Single unit


In the previous example, you just made the price appear smaller by dividing by some other metric. But in this method, you might actually make the price smaller by decoupling parts of the product or by offering more. This creates a lower entry price point that you can later add on to. Car dealerships do this all the time with an attractively priced base model car that gets more expensive with upgrades. Fast food places do this with supersized meals.

For example, you might make your price smaller with these methods:

  • Base product and add-ons
  • Upsells
  • Ancillary sales


Okay, with a title like that, it might seem like you are being untruthful. But businesses do ethically use these methods all the time and there’s nothing wrong with them. Basically, you are setting a price but making it unclear as to what the person is actually getting when they buy. Packaged products (especially in the telecom industry!) do this all the time. Digital download sellers do this too. So do clothing retailers.

For example, you might fog the price with these methods:

  • Package the product with other items so that each individual element cannot be priced separately
  • Offer free bonuses
  • Bump the price to a 9 (i.e. $19.99) so that it “feels” like $19

Prices can seem arbitrary to a customer who just sees the price tag and nothing else. And they might not buy from you if the price seems random because all they can see is the dollar figure with not context around it. You can create some context and help your customers to buy from you by using one or more of these five ways to communicate price.

Published by Aaron Hoos

Aaron Hoos is a writer, strategist, and investor who builds and optimizes profitable sales funnels. He is the author of The Sales Funnel Bible and other books.

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