11 pricing strategies so effective customers will line up to pay you:

Price Anchoring:

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

Decoy Pricing:

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.

Freemium Pricing:

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.

Price Reframing:

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.

We've been told having a job is safer than entrepreneurship.

But that's a lie.

10 reasons to bet on yourself:

More value capture:

As an employee or an owner, income is a function of value creation.

The only difference?

Some (or most) of an employee's value flows upstream to ownership.

Owners capture ALL of the value they create, and even more from their team's output.

Income diversification:

Entrepreneurs spread income across several accounts/business units, acting as insurance against total income loss.

Employees have a single income source AND are exposed to factors out of their control:

- economy
- corporate pivots
- budgets

Low downside:

In the past you needed an investment or debt to start a business.

In 2022 you need an internet connection, creativity, and consistent effort.

EX: you can start a 7-figure agency business (65%+ margins) for a few hundred dollars per month in software fees.

Time freedom:

Successful entrepreneurs use leverage (labor, capital, technology, audience) to disassociate their time with income.

Employees are required to be present in-person or on calls/video, making it hard to use leverage to get more done with less time.