Instead of arbitrarily changing your price, run A/B tests by framing them as timed promotions (e.g., "New Year Sale"). This allows you to measure the impact of different price points on conversion rate and average order value (AOV) without alienating customers, helping you optimize for overall return on ad spend (ROAS).
When selling high-ticket services, don't raise prices incrementally. Instead, make a significant jump (e.g., from $3,800 to $8,000). If it doesn't sell, you've gained valuable market data and can simply re-price the next cohort. The upside of finding a new price ceiling far outweighs the risk of a single failed launch.
Businesses often launch with transparent, all-in pricing because it feels honest. However, as seen across e-commerce, strategies like partitioned pricing ($9.99 + shipping/tax) and added fees consistently convert better. This creates competitive pressure that makes adopting such psychological hacks almost inevitable for survival.
Create extreme urgency by offering a high discount for a very short window (e.g., 30 minutes), then progressively lower discounts for subsequent time blocks. This gamified approach forces immediate purchase decisions by making customers feel they will lose out on the best deal if they wait.
Constantly discounting your main product trains customers to wait for sales and devalues your brand. Instead, splinter off a small component of your core offer and discount that piece heavily. This acquires customers and builds trust without cannibalizing the perceived value of your full-priced core offer.
Rather than being outright scams, many Black Friday sales are sophisticated examples of price optimization. Retailers leverage the consumer's primed mindset to shop, using dynamic pricing and testing discounts that may not be real deals but are marketed effectively. It's about maximizing revenue when purchase intent is highest.
Instead of offering a standard discount to all abandoning shoppers, AI analyzes individual behavior to determine the precise, minimum percentage off needed to secure the conversion. This maximizes sales while preventing unnecessary margin erosion.
For brands with one main product, Black Friday success hinges on two fundamentals. First, deeply understand your unit economics to define a clear target CAC/ROAS. Second, present an offer so simple it requires zero cognitive load. Any customer confusion immediately kills the sale.
Counter-intuitively, for price-sensitive markets, decreasing average order value (AOV) is a key growth lever. A lower entry price point unlocks a larger segment of the population, increasing transaction frequency, building habits, and ultimately driving higher lifetime value.
A brand called Set Active created a campaign with a 25% discount for only 30 minutes, which then dropped to 20% for the next 30, and finally 15% for the rest of the day. This tiered scarcity model compels immediate purchases by creating a fear of missing out on the best deal.
The perceived value of a discount changes based on its presentation. Test framing it as a percentage off, an absolute amount off, a relative equivalent (e.g., "save a steak dinner"), or simply the final discounted price to see which one drives the most action from your target audience.