You're selling a solution to solve The Big Pain of your client.
You have two pricing options:
- Sell it for $1.
- 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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consultant guy
Posted @ 12:26 PM on March 11, 2008
I have noticed this many times as a consultant. I thought I would lose clients when I doubled my hourly rate but they don't seem to care and actually use me more than before.