At Taylor Wells, we speak to companies across all industries and at different stages in their pricing evolution. That includes creating the pricing page best practices for their businesses.

 

The interesting fact is that established companies often do not have a better or more clear pricing proposition and strategy than newer entrants.

 

 

In fact, sometimes, being an established business can also mean that you are more focused on operations rather than commercial performance.

 

We are big believers in learning from the  best practices being implemented by leading and progressive companies as well as highlighting interesting developments in academic work into psychological pricing and influence.

 

Pricing page best techniques and practices from leading websites: What can we learn?

 

Whenever you are booking an online service – you have probably become accustomed to seeing very similar pricing plans layouts. For example, see the page from Hubspot marketing below:

 

Hubspot pricing page

 

If you notice, there are a number of common and academically justified approaches on the pricing page best practices. Firstly, the tiered and differentiated three pricing options where different functionality is given to different user groups.

 

This ensures price controls and that all customers do not end up paying for the same amount.

 

The three pricing tiers approach has also been proven to increase sales of the middle option – i.e. a higher cost version – the Enterprise version makes the middle option look relatively cheaper (see our blog on relative prices – price value).

 

You will notice that the middle option has been highlighted and helpfully called “Most Popular Option” – this is in line with the work done on Influence by Cialdani – that by simply highlighting an item on a menu significantly increases sales.

 

You can also note that the “most popular option” is in the middle. Did you know that people actually select items that are shown in the middle more often, no matter what they are?! This is according to statistical studies. Zendesk pricing page

 

The example above is from Zendesk – an online service desk provider. You can see that they offer freemiums for each option and restrict something within the lower price options. For instance, restricting branding.

 

Order of pricing page and its best practices: Due to the concept of anchoring , there is evidence that putting the highest price first i.e. on the left of the screen can boost sales as it anchors you to a higher price level. Note that these two examples do not use this approach.

 

Note: We do not intend to cover aspects of marketing and driving conversions in this short post. Of course, there are many other ease of transaction systems such as Amazon’s patented one-click shopping. Others opt for “call to actions” or social proof such as testimonials and money-back guarantees. So, all of these steps are proven to increase conversions. But they are more in the realm of marketing than this blog intends to address.

 

See our related blog on what we can learn from restaurant menu prices.

 

Conclusion: Pricing Page Best Practices 

 

As with everything, there are tricks of the trade that can really increase your conversions. The purpose is to nudge people into choosing the service that you prefer to supply.

 

These pricing principles apply as much in a restaurant menu – as it does for online SAAS sales.

 

When you see a graded service offer by an online SAAS with a free trial with one option highlighted, this is a manipulation tactic into making a specific choice.

 

Other things you will see are monthly or annual discounts, number of agents per month, and potentially credit card surcharges.

 

The same goes for your favourite restaurant.

 

Check out the video below on the absurd psychology of restaurant menus:

 

 

For a comprehensive view on driving pricing strategies to maximise growth,

Download a complimentary whitepaper on How to Drive Pricing Strategy to Maximise EBIT Growth 


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Are you a business in need of help to align your pricing strategy, people and operations to deliver an immediate impact on profit?

If so, please call (+61) 2 9000 1115.

You can also email us at team@taylorwells.com.au if you have any further questions.

Make your pricing world class!

 

 

Pricing College Podcast