Anchoring is a psychological bias that overemphasizes the first piece of information received.
Here's how its used:
Sellers show prospects a high number and then follow it up with a lower price to increase perceived value.
More value = more sales
11 pricing strategies so effective customers will line up to pay you:
Anchoring is a psychological bias that overemphasizes the first piece of information received.
Here's how its used:
Sellers show prospects a high number and then follow it up with a lower price to increase perceived value.
More value = more sales
It's common to see pricing options that comes in three's.
One of the options is a "decoy" or a fake designed to increase sales of a cheaper plan.
For example:
The presence of the £1680 plan increases the sales of the £560 because its relatively cheaper.
Companies allow partial use of their products in exchange for creating an account.
Typically, top features are restricted or the user cannot have their experience ad free.
Free versions are effective at "warming up" prospects to become paid users.
Divide the monthly or annual prices by the number of days in that period to show the daily price, or smallest number possible.
Also, compare pricing to everyday objects like a cup of coffee to make bigger costs more palatable.
Lower number = less friction.
Prices ending in 9 cause a wire trip in the human brain.
It's been proven that prices ending in 9s lead to ATLEAST an 8% increase in sales.
Consumers will even pay MORE for the same product if the price ends in 9s compared another number.
Price certain items below cost to increase traffic/visibility in order to sell higher margin products.
Grocery stores often price milk (a necessity) below profitability.
Shoppers will see/need other items while in the store increasing their total order value.
Is a strategy to harmonize supply and demand to maximize profit based on inventory or time availability.
Concert venues, airlines, and hotels employ this approach to ensure they sell all their inventory or get max value for highly coveted tickets/rooms.
Set an initial high price and then reduce during a sale or discount.
The goal is to create urgency because this GREAT price won't always be available.
The high-price remains visible to keep the perceived value high persuading to take advantage.
Consumers, especially Millennials and Gen-Z, don't purchase solely on price.
They support companies that share their beliefs and vision for the future.
For example:
Amazon displays certain products as "climate pledge friendly," making price less relevant.
Rather than selling multiple items at different prices it's more effective to combine them into a single offer.
Usually, bundled items complement one another and provide some cost savings.
The convenience and savings of bundled products increases sales.
Is a short-term financing option that allows customers to purchase a product now, but pay in installments.
It reduces the pain of purchasing by lowering the out-of-pocket cost at the time of checkout.
By 2025 BNPL will be a $680B industry!
The best companies like Apple, Amazon, and Wal-Mart use a well-researched game plan to maximize profit.
Check out..
"10 Ideas on how Pricing Strategies can Improve Growth" by Daman Soni for some great breakdowns.
@barrettjoneill
Please comment, like, and RT the tweet below: https://t.co/vnTuhGG7QA
11 pricing strategies so effective customers will line up to pay you:
— Barrett O'Neill (@barrettjoneill) August 3, 2022
When I get 3K subs I will write weekly about:
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Every single time I set foot in every store/restaurant/place of business in Latin America. Only if they are not completely ignoring me from jump. Or following me bc obviously I came to carry out my plans to rob a store that is approximately 2 sq ft. big.
The part that’s also relevant is I’m oftentimes viewed as respectable-negro adjacent in the dominant culture imaginary. So what of those who are never identified as such? I always think about that. I get surveyed & harassed bad...yet and still there’s levels to the profiling.
When I have to do errands in Panama City, I make sure to apply makeup, perfume, an outfit with cleavage, or booty emphasis, heels and an “expensive” purse. There are STARK differences in the service and treatment I get when I do this vs. when I don’t. STARK. Pero, *STARK.*
LatinAmerica is psychotic in identifying who has money and who doesn’t based on how they are dressed, and how they imagine, carrying themselves. An “elegantly dressed” Black person will face less violence on an errand-run versus one who isn’t. This isn’t absolute so sit down plis
And then the times when I am dressed super-revealing. All of the help and care in the world from male workers. The same white mestizo men who would ordinarily follow me to “prevent theft” are happily helping me find things. Again, race, color, gender, class and more.
That \u201chere\u2019s a White customer, they\u2019re automatically more important\u2014despite the fact neither have you spent money yet so I can\u2019t even claim a paying customer is more important than a browsing customer\u2014so lemme interrupt helping you to go to them\u201d thing just happened to me again.
— \U0001f183\U0001f181\U0001f184\U0001f173\U0001f188 (@thetrudz) January 8, 2021
The part that’s also relevant is I’m oftentimes viewed as respectable-negro adjacent in the dominant culture imaginary. So what of those who are never identified as such? I always think about that. I get surveyed & harassed bad...yet and still there’s levels to the profiling.
When I have to do errands in Panama City, I make sure to apply makeup, perfume, an outfit with cleavage, or booty emphasis, heels and an “expensive” purse. There are STARK differences in the service and treatment I get when I do this vs. when I don’t. STARK. Pero, *STARK.*
LatinAmerica is psychotic in identifying who has money and who doesn’t based on how they are dressed, and how they imagine, carrying themselves. An “elegantly dressed” Black person will face less violence on an errand-run versus one who isn’t. This isn’t absolute so sit down plis
And then the times when I am dressed super-revealing. All of the help and care in the world from male workers. The same white mestizo men who would ordinarily follow me to “prevent theft” are happily helping me find things. Again, race, color, gender, class and more.
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1/ Some initial thoughts on personal moats:
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
I'm increasingly interested in the idea of "personal moats" in the context of careers.
— Erik Torenberg (@eriktorenberg) November 22, 2018
Moats should be:
- Hard to learn and hard to do (but perhaps easier for you)
- Skills that are rare and valuable
- Legible
- Compounding over time
- Unique to your own talents & interests https://t.co/bB3k1YcH5b
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
People talk about \u201cpassive income\u201d a lot but not about \u201cpassive social capital\u201d or \u201cpassive networking\u201d or \u201cpassive knowledge gaining\u201d but that\u2019s what you can architect if you have a thing and it grows over time without intensive constant effort to sustain it
— Andrew Chen (@andrewchen) November 22, 2018
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
Things that look like moats but likely aren\u2019t or may fade:
— Erik Torenberg (@eriktorenberg) November 22, 2018
- Proprietary networks
- Being something other than one of the best at any tournament style-game
- Many "awards"
- Twitter followers or general reach without "respect"
- Anything that depends on information asymmetry https://t.co/abjxesVIh9
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.
