How Price Affects People

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You're selling a solution to solve The Big Pain of your client. You have two pricing options:

  1. Sell it for $1.
  2. Sell it for $10.

What price point would put your customer more at ease? Not the $1! OH NO! The client would feel more helped at the $10 price point.

What The Heck?

  • MIT researchers found people felt greater relief from a $2.50 pill than from an identical one they were told cost $0.10.
  • Why do people prefer named brands over generic ones? Because they feel brands have some 'magic touch' to it.
  • $500 dollar jeans? It has 'special' material.

We're all irrational creatures.

Pricing too low may strip:

  • how much people buy from you
  • how much perceived effect you have on people

Solving customer pains?

Comparing your products/services to competitors, and do this:

Price according to your impact.

 

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Posted on March 05

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