The price tag, we all look for it, well most of us do, and when we find it sometimes it tells us more than just the price!
This blog post isn't about whether a product should be £5.95, £5.99 or £6.00 but more about how the price tag affects the perceived value of a product. Price can often be the deciding factor that turns a maybe into a sale, but it’s not the only thing. The visual appearance of the actual tag or price label can have an impact too! Dirty or shabby price labels will instantly give the impression of old and unloved stock. In the eyes of your customers the products for sale have a perceived value, and that’s before checking the price, so it’s important to make sure products always look their best and that includes the price tag.
When it comes to pricing the first thing to consider are your customers. For instance, if your customer base is 50 plus then your customers are almost certain to need their glasses to read the price and, if you’re like me you will have probably left them at home - size matters! If you’re a discount store then your customers are there for a bargain so the visibility of the price will be important. But, if you’re not a discount store enticing customers to want the product before they look for the price is more important, then you’re onto a winner… product first, price second!
So here are a few thoughts to consider
- Above all else be consistent
- If you’re retail offer is about discounting then the price tag will need to be obvious but it shouldn't overpower the product
- Decide on your price tag design/style appropriate to the product and stick to it
- Always try to position the price tag in the same position – near the bar code is usually a good place and remember bar codes are for retailers not customers
- Don’t’ assume you have to price products on the front of the packaging. Companies spend thousands of pounds researching and designing packaging to tempt us to buy, slapping a fluorescent price sticker in the middle of the packaging design just devalues the product
- Where appropriate encouraging customers to touch products and pick them up is a good thing (and you will sell more) so placing prices on the back will encourage this
- Peeling price stickers, dirty tags will say damaged goods or old stock
- The price tag needs to be proportionate to the product. If it’s too large you will just encourage customers to make their buying decisions on price first. You need to do it the other way around. Try to get customers to fall for the product first and look for the price second. We can all be tempted to spend a bit more.
All the best