Ways to Price a Product Using the Price Range Principle

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The "fork" method is quite simple - the price of the product being sold is compared with the cost of a similar or equivalent product in such a way that the former is much more profitable than the latter.

In general, there are several mechanisms for using a price fork. To use the method correctly, you only need to follow 2 rules:

Always compare two prices (it’s not for nothing that the method is called “fork”).

Start the comparison with a high price (options for spending the specified amount, or the worst one - a product with a similar price tag), and finish with the cost of the product you are selling. Only in this order can you correctly convey to a potential consumer the idea that your product is the most profitable (or in demand). If you break the sequence - say, for example, that your product costs 200 rubles, and yesterday its cost was all 400, then the price fork simply will not work. It is correct to indicate prices in this order: in general, the cost of the product is 400 rubles, but only one day (today) you have a chance to buy it for only 200!

The price fork method is based on human psychology: people pay attention to and remember information about their benefits (savings), but do not attach much importance to real costs (the actual amount of money spent).

Let's illustrate the price range with a real-life example. You need to buy a refrigerator, you've chosen an Indesit product and have set aside 15,000 rubles for the purchase. You come to the store and learn about a promotion where you can buy a more "advanced" LG refrigerator for only 20,000 rubles (while its regular price is 39,000 rubles).

Having bought LG, how will you reason? Being happy that you bought an expensive unit with a discount of 19,000 rubles, will you regret that you went beyond the planned budget of 15,000 for the refrigerator and spent more? Most likely - no, since the moral satisfaction from the benefit received overshadows other insignificant factors. This is how the price fork works.

Experienced managers and sellers know that the most difficult stage of a deal is the moment of voicing the cost of the product to a potential buyer. Even after successfully intriguing medical insurance leads email list the buyer with the presentation of the product and its remarkable characteristics, when it comes to the price, an awkward pause occurs.

10 Ways to Price a Product Using the Price Range Principle

Source: Dilok Klaisataporn/ shutterstock.com

Let's take a hypothetical situation as an example - you present a potential buyer with a certain "problem solver". It costs 30,000 rubles, but you are sure that its price is very high and, moreover, it is beyond your customer's means. It is safe to say that the consumer will sense the seller's lack of confidence and may decide that they are trying to sell him a product that does not correspond to the stated price.

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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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To avoid misunderstandings, the seller must determine the value of the product being sold and only then tell the customer the price. If you do not mention the advantages of the product, then no matter what the price or even the price range is, it will always seem too high for the customer. That is why experienced sellers prepare answers to the buyer's expected questions in advance and have "a couple of aces up their sleeve."

We have prepared for you 10 techniques based on the price fork method that will allow you to name the price in such a way that it sounds relevant and justified.

Price from…

When you are asked about the cost of a product, name the lowest price range, and then ask the potential buyer and find out what functions and characteristics the product he needs should have. In this way, you have the opportunity not only to correctly indicate the price, but also to involve the client in the interaction process and, based on the information received (requests and possibilities), offer him the best option.