How customer expectations can affect your sales.

Actual sales ratios for higher priced items are more defined by expectation than by the actual prices. True, people will always 'window-shop' for items they can't afford, but in general sales will increase where people find the products they expected at the prices below their expectations.

Adjusting the expectations in your favour is where smart marketing comes in. If you increase the expectation and 'aura' of quality to the brand and products, people suddenly 'feel' as if the prices are cheaper (more of a bargain).

A high-class jewellers shop with beautiful and rich decor may sell exactly the same items as a local market trader, but we sure as hell want to pay a lot less from the market. Increase the atmosphere and expectation of quality, and you'll see an increase on conversion ratios.

The setting of expectations begins with marketing as the following 'example' text ads may show:

Discount Jewellers
Amazing discount jewellery from world class jewellers. We bring the discounts of direct imports from around the world to you. Gold, silver and platinum at incredible prices.

Royal Jewellers
We bring you world famous jewellery designs from across Europe and the far East. You too can own the precise beauty and splendour of jewellery from craftsmen who work by Royal appointment.

Now, look at the way these affect your expectations of the prices you'll see. You are only interested in ad #1 if you want a serious bargain. While ad #2 could have the same prices as ad #1, we will perceive the prices as being far lower than we'd expected when we arrived.

Ad number 1 is promising us "incredible prices", and so if we are not seriously impressed with the discounts presented, if we know of just one place cheaper, we will feel deceived.

Ad number 2 instead focuses on quality, and so long as the site is well designed, and the pictures of the jewellery look good, then it has a far better chance of keeping potential customers around long enough to make a decent sales pitch.

There is of course a chance that ad #1 will generate more traffic, but I'd be confident that ad #2 would generate more profit. Bargains are a somewhat relative thing, if you make something seem to be worth more, then it likewise will seem more of a bargain.