Partitioned Pricing

Want to learn about Partitioned Pricing? This is the Page for you. Jump around using our Table of Contents

• Definitions
• Example #1
• Example #2
• How to apply to your business

Definitions:

Book Definition: The division of a product’s price into several components, provided that the components cannot be bought separately

Our Take-away: People respond to pricing better when they can see the separate price for products and additional services.

Partitioned Pricing Example #1:

This is one of the most common ways you’ll see this principle applied. On the left you seethe complete out of pocket cost. On the right you see the base price, with the shipping cost below, giving you the same total cost

Partitioned Pricing Example #2:

There was a complex study done testing regular pricing format to partitioned format, with over 300,000 and this is the simple conclusion. If people are familiar with your brand they respond orders of magnitude better to portioned pricing vs without.

How to Apply Partitioned Pricing to your business:

The examples above may not be extensive, we believe as a reader of our site you can understand or have seen this many times before.

Te main way is to show the base price then show up charges under the base price. Think $12.99 Plus S&H

Comment below some ideas we may have forgotten

Conclusion:

You may be thinking why on earth does this even work? Have you ever been scrolling through a website expecting there to be a up charge somewhere? This completely eliminates this problem, as you see all cost upfront. And removes all doubt of hidden cost, as you come across as honest.

If you liked this, check out our official psychological pricing pdf or view more Psychological Pricing Strategies