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When we see prices, we aren’t seeing the numbers alone.
It’s an entire perception of whether the service or product is a good deal or an investment worth our money.
Pricing strategies play a pivotal role in influencing this perception and consumer behavior. One such strategy that has stood the test of time is charm pricing.
For med spas, where competition is fierce and clients are constantly weighing up options, how you present your prices can make all the difference.
In this blog, we’ll discuss how this pricing method works at med spas and how you can use it to your advantage to boost your bottom line.
What is charm pricing?
Charm pricing is a psychological pricing theory, which is the practice of setting prices just below round numbers.
It relies on the phenomenon that consumers perceive prices ending in nines, such as $9.99 instead of $10.00, as significantly lower. This perception is rooted in the way our brains process information.
When we see a price tag, our minds often focus on the leftmost digit, creating a mental shortcut emphasizing the lower digit — in this case, 9. This creates an illusion of savings, making consumers feel like they’re getting a better deal.
It’s no wonder that hundreds of global brands use charm pricing to drive sales – Walmart, Target, Spotify, Netflix, and Nike are just a few examples.
Charm pricing example
To get how charm pricing works, you’ve got to see it in action. Let’s imagine you tweaked the service charges at your med spa using charm pricing:
- Laser hair removal for $299 instead of $300
- Lip filler priced at $599 instead of $600
- Hydrafacial for $249 instead of $250
It’s wild how dropping that extra dollar instantly makes it feels more affordable, right? It means clients are more likely to book, and that’s exactly why med spas (and other businesses) use charm pricing.
You can also apply this strategy when creating med spa package ideas to make bundled services feel like an even better deal.
Does charm pricing work for med spas?
Absolutely — when used strategically. The key is to use it selectively and with other pricing strategies. In med spas, it works great because:
- Med spa treatments are considered luxury services and slight price differences can influence consumer decisions.
- Clients often compare services across med spas, and a treatment priced at $199 might seem more affordable than a $200 one.
- The psychology behind charm pricing makes treatments feel more accessible to a wider pool of clients, leading to more bookings.
However, charm pricing isn’t a one-size-fits-all solution. Overusing it can make your med spa pricing seem gimmicky or reduce the perceived value of your services, so it’s important to use it strategically in your business.
Benefits of charm pricing
If a $1 difference can get more clients through the door, more bookings, and a boost in revenue, why wouldn’t you take advantage of it?
Now, let’s break down the benefits.
🧠Psychological appeal
The psychology behind charm pricing is that it can tap into consumers’ subconscious minds. It makes prices seem lower at a glance because when people read from left to right, they process the first number more strongly.
In short, this strategy involves using our mind’s mental shortcuts to make us perceive a product as lower priced than it actually is.
💎Increased perceived value
Logically, it’s funny how a slight price drop can make such a big difference in how clients perceive value — even if the difference is minimal.
However, perception is key. People instinctively see lower prices as savings, making them more likely to book. The same trick works for upsells.
For example, when a skincare package is priced at $49 instead of $50, clients are more open to purchasing it because it seems like a steal.
🤹Flexibility in pricing strategy
At med spas, charm pricing allows for subtle price tweaking without drastic cuts.
So, instead of slashing prices, you can create the perception that clients can afford your services/products. For example, dropping the cost of a laser package from $300 to $299 isn’t a major loss, but it’s much more affordable in the client’s eyes.
By using charm pricing, med spas can fine-tune their pricing strategy without resorting to big price drops, which helps keep profits intact.
It also works well for membership packages, helping you start a profitable membership program that makes ongoing treatments feel more accessible while ensuring recurring revenue.
🚀Competitive edge
In a saturated (or even oversaturated) med spa market where everyone is battling for custom, pricing strategies matter — and charm pricing can give you an edge.
By setting prices like $99 instead of $100, your services feel more affordable, even if the actual difference is small. Here’s why it works:
Tips for implementing charm pricing at your med spa
Small price tweaks can go a long way. Here’s how to make charm pricing work for your med spa.
1. Consider your target market
Charm pricing doesn’t work for everyone.
It works only if it aligns with your target customers and what drives their buying decisions. For example, if your clientele is fairly high-end and pricing isn’t really a deal-breaker for them, it may not be the best fit for your business.
It’s important to test your market, understand your buyers’ preferences, and target demographics that would be more susceptible to this type of pricing.
The types of clients that love charm pricing are:
🎯Bargain-driven buyers
🎯Value-driven buyers
🎯Emotional buyers
🎯Rational buyers
Why not run an experiment for a month? Test the waters on limited services and see if tweaking your pricing increases the number of booked appointments.
2. Combine with other pricing strategies
Charm pricing is a powerful pricing method, but it becomes even more effective when paired with other pricing strategies. Pair it with:
🚀Discounts: These create a sense of urgency and desire. When paired with charm pricing, the effect is even better. Apply discounts at POS for birthdays, referrals, or seasonal offers — like $99 instead of $120 for a birthday facial.
🚀Loyalty perks: Loyalty programs make clients feel like VIPs, and with charm pricing, the effect doubles. They can earn points for referrals and so on.
💡Pabau can help your med spa set up and streamline loyalty rewards, discounts, and gift cards and more via its suite of built-in marketing tools.
🚀Value-added services: Instead of just lowering prices, a $149 facial paired with a complimentary LED light therapy session feels like a premium deal.
3. Price bundles strategically
You can also combine different services into a curated experience, such as “The Glow-Up Bundle,” which partners a Hydrafacial with a mild chemical peel.
In that case, you can also use charm pricing. Instead of pricing a facial at $100 and a chemical peel at $150, bundle them together for $249 instead of $250.
Even though the price difference is only one dollar, the package feels like a better deal.
4. Create tiered pricing
Clients want options, right? You can offer different pricing tiers for treatments to help maximize the pool of clients (and budgets) they will appeal to.
The good news is that you can also use charm pricing for this:
☑️For a basic facial: $99
☑️Advanced facial: $129
☑️Premium facial: $199
5. Avoid overuse
If you overuse charm pricing, it can make it lose its magic. It works best when it’s a tool, not a crutch, and should be used sparingly, not as a default pricing model.
An example is if all the services you offer end in 9. To use it smartly:
- Add it for entry-level treatments to encourage bookings
- Save it for special promotions so it keeps its psychological pull
- Avoid using charm pricing for premium services so as not to devalue them and to maintain a more high-end feel. For example, laser resurfacing at $800
If everything is $99, $199, or $299, it stops feeling like a deal and starts looking like a gimmick. It can undermine the luxury perception of the treatments offered.
Leverage Pabau to strengthen your med spa pricing efforts💰
The bottom line? We see charm pricing everywhere, and while there’s no single explanation for why it became so common, one thing is clear — it works. And for med spas, it can be a game-changer pricing strategy.
The key is to maximize its effect, and that’s where Pabau can help😊
Pabau is an all-in-one practice management software solution for managing booking and scheduling, patient record management, marketing, and more.
It also enables med spas to strategically optimize and leverage charm pricing to boost sales and client loyalty. Here’s how:
💡Pair it with discounts and promotions: Auto-apply discounts for birthdays, seasonal promotions, or referral rewards to maximize bookings
💡Pair it with loyalty programs: Reward repeat clients with charm-priced deals, like $49 facials instead of $55 after an agreed number of visits
💡Use packages for higher spending: Encourage upsells by combining services into packages and using charm pricing to increase spending
💡Track your pricing strategies: Use Pabau’s reporting tools to track which charm-priced services perform best so you can adjust your pricing
Want to see how we can take your med spa to the next level? Book a demo today!
