According to a study of over 1.5 million online stores, Konigle found that stores that use charm pricing show higher conversion rates and almost 4% greater revenue than similar stores who don't use charm pricing. So what is Charm Pricing? It is a psychological phenomenon where perceptions and evaluations are disproportionately influenced by the left-most digit of the product price.
For the AirPods Pro above, Apple prices it at $249 and most shoppers psychologically round the price down to $200 rather than rounding up to $250. Perceiving the AirPods Pro to be almost 50 dollars cheaper! Therefore making customers more likely to purchase and boosting their revenue.
Implement this tactic from Apple on your Shopify Store, here's how:
- Install Konigle to your Shopify store.
- Under improve conversions strategies, implement the ‘Use charm pricing techniques to set product prices’ tactic.
- Enable charm pricing within minutes with the Charm Pricing tool. Choose to price your products to end with .99, .95, 0, and many more and Konigle will automatically apply charm pricing across your whole store for both old and any new products you add in the future. All of this easily done in 5 minutes!