HiFi Klubben

The ad: Pricing psychology for high-end purchases

HiFi Klubben, a retail chain selling home audio equipment, found a way to let their target audience tune into their ads. Their Catalog Ads are a great example of how price doesn’t have to be a deal-breaker when it’s supported by guarantees.

Instead of hiding the fact that they’re selling high-ticket products, pricing is one of the key elements. By positioning it with reputable brand names and guarantees, they frame their product as a long-term investment instead of a risky, one-time spend.

Why it won Catalog Ad of the week

This Catalog Ad campaign got a high five from us because it generated a 48% increase in return on ad spend (ROAS). This type of increase is the result of knowing which elements to add. Guarantees, ratings, review counts, and brand names all work together to reduce buyer hesitation. 

What makes this Catalog Ad great

Leads with a brand logo that consumers already trust

Incorporating individual product brand names into our Catalog Ads is a difficult strategy to pull off. Our cheat sheet to higher performing ads show that the gains are typically marginal, while your conversion rate can decrease by as much as 30%. 

At least, that’s what you can expect if you’re selling brands with little brand recognition. However, in the case of HiFi Klubben, the brands that they stock are popular and well-regarded. Putting the brand front and center makes sense for them. 

Uses price anchoring and pricing psychology to communicate value

Each ad highlights the price, even though none of the products are on sale. This strategy sounds even more counterintuitive when you consider that all these products are over 1,000 DKK. Yet, it works. It sets clear pricing expectations for buyers which is key when you’re selling higher priced items. 

Also, as they’re selling various types of record players, shoppers need a quick way to compare products that look seemingly the same. By adding the price, consumers can use price comparison as one way to narrow down their choice. 

While the ads don't use price anchoring by listing an item’s original price along with its sale price, the way they organise the different products does in fact create a sense of value. Higher priced items are placed next to a much more affordable option. This way, the headphones all of a sudden looks like a bargain, even without being marked down. 

Includes trust signals to give peace of mind

One of the challenges that multi-brand stores face is that they’re competing with the individual brands themselves. Why would consumers buy from your store instead of directly from the brand? 

Why should they trust you? This is even more true when the brand is more well-known than your store. 

To position their store as a reputable seller, HiFi Klubben includes guarantees strategically in their Catalog Ads. They highlight their three-year guarantee by displaying it as a vibrant orange badge. 

While this guarantee is great, how do you know that they’re the real deal? 

To give buyers’ further peace of mind, they also include a star rating. What makes this strategy even more effective is that they include how many have reviewed the product, which also highlights their popularity further. It’s not a case of one customer thinking this product is great, but over 100!

Key Takeaways

The HiFi Klubben ad campaign proves that your product isn’t the only star of the show. Price, ratings, guarantees, and even another brand name all have key supporting roles to play.  

Here’s what you can learn from their ad campaign:

👉 Leverage another brand’s recognition

If you’re selling well-known brands don’t be afraid that they’ll drive attention away from your online store. By making their logos highly visible, you communicate to shoppers that you sell only reputable, high-quality products and that higher prices are justified. 

👉 Position the price as part of the experience

The price communicates to shoppers that they’re buying into a premium lifestyle. The fact that there’s no mention of a discount reinforces this idea that you’ll be getting a high-quality product.

👉 Make guarantees part of the pitch 

HiFi Klubben is so confident that you’ll love the product that they’re willing to refund you if the product didn’t meet your expectations within the first month. Then, the fact that it comes with a generous, three-year guarantee is positioned as part of the core value, further suggesting that this is a quality product.