11. Dream car for only 300 PLN per month

Breaking down the total amount into smaller installments is another technique that allows prices to be presented in a more attractive way.

Instead of showing that a streaming service costs 15 PLN per month, the price can be presented as 0.50 PLN per day. This way, customers will classify the fee as much lower¹.

Source: orange.pl

This technique could also be observed in the car pricing example from the previous lesson. Directly below the total price, the monthly price in the business package was provided. Additionally, by presenting the offer as targeted at entrepreneurs, a net price could be given, while the total price was the gross price.

Source: audi.pl

If, however, the installment breakdown does not make the offer attractive enough, the price can be presented as the equivalent of a small purchase². The perception of a cost of, for example, 10 PLN per day is quite different from “you pay per day as much as a small coffee at a gas station costs.”

In summary, the daily equivalent of the total price is often more accessible to the customer than the full amount. This allows the customer to classify the product as cheaper and more affordable. If the daily price is not attractive, it can be replaced with an example of something perceived as a small expense.

[1] Gourville, 1998
[2] Gourville, 1999