Buying Psychology: A Pricing Strategy Story (PART 1)
Give your eyes a break, listen to the audio version:
Mr. Joe Bloggs is a fun-loving guy.
He’s PASSIONATE about his business, and spending quality time with his friends and family. Between the two, he checks up on Einstein Marketer for the latest marketing advice.
So, he knows that PEOPLE LOVE TO BUY STUFF.
And, he’s already vastly improved his conversion rates with Einstein’s Funnel Guide.
But, he’s like everyone else…
…he wants more than yesterday…
….more customers, more conversions, more money, more free time…
He keeps checking back on Einstein’s website to optimise his digital platforms, using their in-the-trenches experience and advice.
Until, one day he spots this BLOG about Buying Psychology, and a tidal wave of AH-HA comes crashing on his head.
Because very few businesses know how to OPTIMISE their PRICING STRATEGY.
And Joe Bloggs is no different.
Here’s 4 strategies that don’t involve any sinister behaviour like false WAS: £8,000,000- NOW: £8.99 claims.
High Ticket Buying
This offer works beautifully if you’ve got a RANGE of buying options, or products to sell.
Joe Bloggs has. He owns a business that sells corporate business training.
Alongside his main training he has a subscription-based website with training videos, and a library of physical books (with largely the same content as the videos).
Joe has a GROWING subscription list, but his books aren’t selling. They come at a higher price and he’s considering lowering it.
- Year Subscription (online training access)- £79
- Year Subscription (training books)- £149
But, before he can reduce the price (and the profit), Einstein steps in with a pricing strategy that appeals to buyers’ psychology.
We call this the Einstein High Ticket Maximiser.
His two offers become three, and by doing this, we hugely improve book sales.
- Year Subscription (online training access)- £79
- Year subscription (training books)- £149
- Year subscription (training books and online access)- £149
See what we did there?
By combining the two offers into one (OFFER 3), he adds a ton of PERCEIVED VALUE to his books. As we mentioned earlier, there is little difference between the content in his BOOKS and VIDEO.
Joe does not hide this from his prospects, but by combining OFFER 1 and 2, buying psychology suggests that OFFER 3 should be worth £79 + £149 (£228!).
The only thing people love more than buying, is BUYING AT VALUE. They feel like they’re winning, like they’re better than everybody else who’s paid more.
OFFER 3 makes a massive improvement to Joe Bloggs Book Sales. He might even make it a bestseller (we’ve done it for a client before, check back to our BLOG or subscribe for information on this Case Study, coming soon).
Joe Hits a High
Joe’s profits grew to CRAZY levels with the HIGH-TICKET PRICING STRATEGY.
A billionaire saw the growth, and made an offer for the company, that Joe COULDN’T REFUSE.
But Joe wasn’t done with business. He used his entrepreneurial knowledge to invest in an industry he’d always been interested in, Vintage Cars.
Joe was able to get into this industry, because he had a high level of investment capital from the sale of his previous business.
He saw an OPPORTUNITY for buying Vintage cars that hadn’t been well-kept, repairing/improving/upgrading them, and selling them on.
But Joe ran into a problem…
…his high-ticket pricing strategy wouldn’t work for this industry, because all of his products were high ticket.
So, Joe organised his car lot by BRAND.
His sales weren’t hitting projections, and everything seemed like it was lost…
But, just when Joe’s cash-flow was about to turn RED, Einstein stepped in with another KILLER PRICING STRATEGY.
We’ll explain this strategy with a quick question:
What’s the best way to sell a £24,000 car?
Put it beside a £90,000 car.
The reason Joe wasn’t making enough sales, was because he’d arranged his products by BRAND (and therefore, price).
All his £20,000, £50,000 and £90,000 cars were grouped together. Other than being neatly organised, how does that appeal to a buyers’ psychology?
It doesn’t. Everything looks expensive. His customers automatically gravitated to their spending limitations…
…and nothing looked like GOOD VALUE. None of his cars seemed CHEAP.
Until, Einstein raided his key cabinet, rearranged the parking lot, and gave some seriously cool cars, a seriously cool ANCHOR PRICE.
A strategy like this works, because customers get an idea of price from NEARBY PRODUCTS, and are then hit with one that is a lot less. This makes even £24,000 sound CHEAP!
It immediately taps into the VALUE SENSOR of a buyer’s psychology, and will convert Joe’s car sales at a much greater rate.
Joe’s businesses are doing pretty well, eh?
But he’s not through yet.
We’ve ONLY told you about TWO pricing strategies that lifted his first businesses off the ground.
His business life explodes in the next instalment of our PRICING PSYCHOLOGY BLOG SERIES…
…because Einstein’s got a few more KILLER PRICING STRATEGIES up our sleeves yet.
Check back to our BLOG to find out about Joe’s next business idea, and a pricing strategy that propels his SUCCESS to the next level.
See you there.
Did you enjoy this content? Had an experience similar to Joe’s, or wonder how these pricing strategies could apply to you? Leave us a comment below or send us a message.
Originally published at www.einsteinmarketer.com on February 13, 2018.