<p>You're selling a solution to solve The Big Pain of your client. You have two pricing options:</p> <ol> <li>Sell it for $1.</li> <li>Sell it for $10.</li> </ol> <p>What price point would put your customer more at ease? Not the $1! OH NO! <span class="highlight"><strong>The client would feel more helped at the $10 price point.</strong></span></p> <h2>What The Heck?</h2> <ul> <li><span class="highlight">MIT researchers <a href="http://www.latimes.com/news/nationworld/nation/la-sci-pain5mar05,1,6333231.story">found</a> people felt greater relief from a $2.50 pill than from an identical one they were told cost $0.10.</span></li> <li>Why do people prefer named brands over generic ones? Because they feel brands have some <strong>'magic touch'</strong> to it.</li> <li>$500 dollar jeans? It has<strong> 'special'</strong> material.</li> </ul> <h2>We're all irrational creatures.</h2> <p>Pricing too low may strip:</p> <ul> <li>how much people buy from you</li> <li>how much perceived effect you have on people</li> </ul> <h3>Solving customer pains?</h3> <p>Comparing your products/services to competitors, and do this:</p> <h2><strong>Price according to your impact.</strong></h2> <p>&nbsp;</p> 2008-03-04T18:17:00-08:00 false 613 how-price-affects-people 0 2009-11-03T18:00:56-08:00