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Separated Price

Disciplines > Marketing > Pricing > Separated Price

Description | Example | Discussion | See also

Description

One way of displaying prices is to separate the price from the product.

Ways to do this include:

• On the back or bottom of the item.
• With price labels turned away from customers.
• On a display card near the product.
• Only having a bar code on the product that requires a sales person to scan this before reporting the price.
• On a separate price list.
• At the checkout.
• Sales people must be asked for the price (or who may supply this after sales pitch).
• Getting them to click on the product on a web page (and maybe otherwise become further engaged in the product) before the price is displayed.

Example

A jewelery store turns price labels around so customers have to enter the store to inquire about the prices. This gives the sales people the opportunity to engage the customer in a sales pitch or to upsell to more expensive items.

A clothes store puts prices on a display near racks of clothes, but not on each item. This helps stop the problem of price tags getting lost in the folds of clothes and also makes price changes much easier when they have a sale.

Discussion

Separating the price from the product helps focus the customer on the product first, hopefully giving them time to build desire for the product rather than being immediately put off by the price. When an emotional connection with the product has been made, the customer may then be less price sensitive.

There is of course also a danger that customers will not even consider a product where they do not know the price, and may become suspicious that this is a part of a sales technique. Even having to look nearby for the price can put some people off. Whether or not customers expect to see the price immediately may depend on their price sensitivity and conventions around the store type and products.

Not displaying the price is often used in sales of luxury goods, where this may be considered 'crude' or that customers should not look too closely at the high pricing as they play the game of a 'rich customer' who is not interested in the price and can buy what they like, not just what they can afford.

Always displaying the price, especially in large and visible formats, is typical in sales or where price discounting is the norm. In such cases the price is a part of the attraction as a 'bargain' is effectively being offered.

See also