The Psychology of Pricing and Discounting: 6 Tips and Tricks
How to get shoppers to spend more? Here’s what to know about the psychology of pricing and discounting.
Running a sale? Check your profit margins and decide your discount!
It’s no secret that discounts are a great way to drive sales. The strategy behind a profitable discount takes some planning, though, since we want to drive sales without reducing our profit margins too much. If you’re not sure what your profit margins look like on an item when you take a percentage off their original price, start with this quick calculator.
Not sure how to create a promo or discount? Start with our guide here! ✨
Plug in the cost of the item and the markup, then experiment with different discount percentages and see how they affect your sale price, profit, and gross margin!
ℹ️ Prices rounded to nearest cent. Percentages rounded to nearest whole number.
Beyond these calculations, keep these tips in mind as well:
Now that you’ve calculated your profits, it’s time to launch the ad campaign that features your discount targeted toward your ideal audience. Promote your discount + items, learn what works, optimize your campaigns, and report on your success, all in one place. The AdRoll platform saves you time and money. Get started today!