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Anchoring in the wild
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After yesterday's message, there were replies on how much was this purse. The range went between 90 and 290. When I saw the purse I guessed 80-ish. The actual price: 436 Now, this is what happened: we got anchored. All of this unconsciously. Here's how (I think) this went. Having that poster next to it at 15 euros made my brain relate both things.
If that's 15 euros, a 10X increase for this should be acceptable as a maximum.
They're next to each other. They MUST be in kind of the same ballpark.
There's no way the purse is over 400. It doesn't even cross my mind.
The thing is, it played against the seller.
The jump was SO high, that it made me not even consider it.
You start questioning everything about it. Does it come with 200 euros in cash inside?
When your customers start questioning your prices, you're in disadvantage. Because they'll feel the urge to have you justify the prices and everything else. In your business: Sticker-shock them. If you have a wide range of offerings, give them first the higher price. It'll make them feel everything else is not THAT expensive. |
Rod Aparicio
Get one tip, question, or belief-challenge that just might change the way you market, to help your customers buy. A *daily* email for b2b founders on improving your business —without the bullshit.
Yesterday's message on this Super Deluxe book for 4 105.00 EUR is Wings, by Paul McCartney. A limited edition, signed, with a numbered copy. Is people paying for the time and materials he put into it? No. Is people paying for how long it took him to get the book done? No. Is people paying because of the story in the pages? Maybe. What they're paying for is for what having that limited edition, signed copy means: that they're having something rare. Furthermore, is the price fair? To the ones...
Super Deluxe Hardback Book in Cloth, Slipcase with Exclusive Blue Color LP. 4 105 EUR Would you pay for this? Material production costs. 35 - 50 EUR Effort put into it. A lot. Does it make this worth it per se? Signature. 0.5 EUR in the ink used. It's just a book, after all. Unless, the price is not about what's the book made of. Or the cover. Or its story. Or the attached LP. Or because it's "deluxe". Or even the signature.
Business is not busyness. Being busy doesn't mean you're actually bringing value to your business. And even worse, you might not bringing value to your customers (the right ones). You might end up full of tasks, to-dos, overwhelm and choose to focus on every customer (because they're all important, right?). And what you're doing is choosing to ignore your most profitable ones over the ones who are not. Keeping that game for long will end in only busyness —quite likely without a business.