A few quick pricing tips from Ikea brought to you by Pedro Girardi.
𝗠𝗮𝘀𝘁𝗲𝗿 𝗻𝗼𝗻-𝗰𝗼𝗿𝗲 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗹𝗶𝗸𝗲 𝗜𝗞𝗘𝗔 🟦🟨🟦
Yesterday I decided to buy a new computer desk. IKEA was selling the perfect one at €99. A steal. But shipping costed €59. That’s crazy! Even the €5 fee to Click & Collect at the store sounded excessive. I was committed to saving those sixty bucks.
Once at IKEA, I learned the desk was only available through Click & Collect (i.e., I couldn’t pick the package myself and bring it to checkout). Meaning that, to IKEA, it made no difference whether I chose Click & Collect online (and paid €5) or Click & Collect at their own computer terminals (for free). How can that make sense?
As I walked through the store, I “remembered” that I desperately needed a picture frame, spatulas, wine glasses, a coat hanger, soup plates… With €60 worth of items in my cart, I learned that IKEA is a master of using non-core pricing to guide customer behavior.
How they do it:
𝟭. 𝗞𝗻𝗼𝘄 𝘆𝗼𝘂𝗿 𝘂𝗻𝗶𝗾𝘂𝗲 𝘀𝗲𝗹𝗹𝗶𝗻𝗴 𝗽𝗿𝗼𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻 (𝗨𝗦𝗣): IKEA knows it has good quality goods at a very low price.
𝟮. 𝗛𝗼𝗼𝗸 𝘆𝗼𝘂𝗿 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀: IKEA hooked me with the €99 desk. Is it a low margin product? Probably, but it got me to the store.
𝟯. 𝗚𝗲𝘁 𝘆𝗼𝘂𝗿 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝘁𝗼 𝘀𝗲𝗲 𝘆𝗼𝘂𝗿 𝗨𝗦𝗣: IKEA uses exorbitant shipping fees to get you to the store. Once you are in the store, you buy many other products that you would not have thought of when online shopping.
TL;DR: IKEA uses non-core pricing to highlight its USP.