May 2024 - 21

MANAGEMENT
selling plants at a premium price is
more likely to happen if benefits are
communicated more than features.
We were also able to show that at a
low price point (such as a sale price),
the price alone helped increase the
likelihood to buy. So, as retailers strive
to nudge up prices for plants and other
products, consider placing price to the
right and in a smaller font to spell out
several benefits. Only make the price
the headline when products go on sale.
We also investigated the role of
" sale " font size and color, in addition
to sale price, on purchase intentions
of live plants. We showed that price
was the second most important
product attribute relative to plant
type, " sale " font color and size and
sale price representation (e.g., regular
price, percentage off, or multiple unit
sale pricing). We show there was a
synergistic effect of " sale " font size
and color such that when a red and
larger font was used to communicate
the word " sale, " it was noticed faster
compared to a black font that was a
similar or smaller size. Retailers will
sell more units at buy one get one
(BOGO) compared to 50% off.
The Psychology of Pricing
Another consideration in pricing
is the psychology of pricing. Ending
prices in odd numbers, especially nine,
can be attributed to a few causes.
The human brain makes a shortcut
to process $9.99 as $9, not $10.
Psychologists will also tell us that
numbers facing left (3, 5, 7, 9) are
preferred over numbers facing right
(2, 4, 6); thus consumers like odd
numbers more than even numbers.
Holdershaw, Gendall and Garland
(1997) studied prices in supermarkets
and showed that most ended in either
9 (60%) or 5 (30%). Using 9 rather
than 7 or 5 adds two to four cents
to the profit margin, so 9 is the best
option for ending prices.
Retailers need to begin by
considering costs, but also need
to factor in the five dimensions of
perceived value. The more perceived
value a product has, the greater its
price should be. We should charge
more for new or novel cultivars and
plants that are fragrant; they have
higher epistemic value compared to
older or non-fragrant cultivars.
Communicating prices is another
artful consideration. Creating
differentiation, through the use of
brands and in other ways, can also
help to increase the perceived value.
Higher prices need to go to the right
and on the bottom of signs and
displays. Lastly, consider the ending
digits. Using the number 9 will help
you capture a maximum profit while
using a psychological shortcut most of
us use when we look at a price.
For complete references, visit
lgrmag/article/pricingproducts.
Bridget K. Behe, Ph.D., is professor
emeritus at Michigan State University.
Contact her at behe@msu.edu.
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Selling Soil Moist with your plants and green goods helps your plants and improves customer satisfaction.
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plant waterings.
For over 26 years, growers have blended Soil Moist in their
potting medium when growing their plants. Plants will benefit
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the retail sale. Free Hang Tags and point of purchase materials are
available to educate your customers.
Learn more today at:
www.soilmoist.com
1-800-962-4010
© 2024 JRM Chemical, Inc.
Selling retail packages of Soil Moist to your customers for their
untreated plants will help increase plant establishment with less
waterings. Soil Moist increases customer satisfaction and cross
merchandising opportunities with other Soil Moist water
management and mycorrhizal products.
LGRMAG.COM | 21

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May 2024

Table of Contents for the Digital Edition of May 2024