Imagine if there was a quick way to boost your sales?
To make people queue for your offers… To make your offers so attractive, that they simply can’t say no to.
Shhh….
There is…a way…
You learn about it in a moment…
As you sit there, stay glued…
And get ready to have your mind blown
Because you are about to discover one of the easiest and fastest way to drive sales and unlock your profits.
You will also discover
How to make your offers look like a gift.
Your Offers will sell themselves…
Are you ready?
#1 What is Price Anchoring
Price anchoring is a pricing strategy that involves setting a high initial price for a product or service, to create the perception that it is valuable and high quality.
This high price is then followed by a lower, more reasonable price for the actual product or service being sold.
Price anchoring is like setting a high benchmark to make a lower price look more appealing.
It helps customers perceive the lower price to be a great deal, even if it is the original asking price.
Simply put
Price anchor is like setting a value in a prospect’s mind so that your actual price seems like a gift to your customer.
For instance
if you offer a product for $100,
then the customer will perceive a discount of $20 as a great deal,
even if the product’s actual value is less than $80.
For example
a furniture store may start by saying the couch is $1,500, but then give a discount to make it seem like a better deal at $700.
It is like setting a high target to make the lower price seem more desirable.
The idea behind price anchoring is that the customer will perceive the second price as a great deal, and be more likely to make a purchase.
This technique is used by nearly all businesses who understand the benefits of price anchoring.
#2 Why Price Anchoring is So Effective
Every time we are
presented with an offer, we must compare it to something else. Anchor price
allows us to compare the benefits, features and value. This is how we humans
are wired.
Example
A product is truly
never “cheap” or “expensive.
When we go and buy
a new PC.
We look at
different models, and compare prices, features and benefits.
We see anchor price as a
reference point, and we tend to evaluate the value of product based on that
reference point.
This means that we are more likely to make a purchase when we
see a discount or a reduced price that is anchored to a higher price point.
Price anchoring has a significant impact on consumer behaviour.
Every time we are presented with an offer, we must compare it to something else. Anchor price allows us to compare the benefits, features and value. This is how we humans are wired.
Example
A product is truly never “cheap” or “expensive.
When we go and buy a new PC.
We look at different models, and compare prices, features and benefits.
We see anchor price as a reference point,
and we tend to evaluate the value of product based on that reference point.
This means that we are more likely to make a purchase when we see a discount or a reduced price that is anchored to a higher price point.
#3 The Benefits of Price Anchor
I’ll call all benefits on once coach, shall I?
- Price anchoring makes it easier for customers to make purchasing decisions.
- Price anchoring helps to set the boundaries of pricing and make customers perceive the lower price as a better deal.
- It encourages customers to purchase more items and increase sales.
- It helps to reduce the amount of time and effort required to close a sale.
- It allows businesses to offer discounts and promotions, so customers don’t feel like they’re paying full price for an item.
- It helps build loyalty and trust, as customers are more likely to come back for discounts and aim for the best possible deal.
- It boosts profits by convincing customers to purchase items that they would have otherwise not have bought!
- A business may choose to adjust the anchor price upwards to create a perception of luxury/superiority.
#4 How Can You Benefit from this Pricing Strategy
Price anchoring can be an effective way to optimize your pricing strategy, by creating a perception of value in the minds of your customers.
This perception will help to increase sales, as customers are more likely to be willing to pay a higher price for a product or service that they perceive as valuable.
By creating a perception of value, customers are more likely to make a purchase without needing to be convinced of the product or service’s worth.
Here is an example to illustrate the Power of Price Anchoring
Annual membership | Lifetime membership |
€ 997 | € 1200 |
Let’s get real.
The offer on the right, lifetime membership, looks like a real gift, agree?
Well… you need to see your GP if you don’t…
Because
That is a killer offer!
But…
If you only provided one choice of lifetime membership for the same price, € 1200
It wouldn’t look like a great deal.
Because…
We don’t have what to compare that price to…
Oh ye, as you sit there and read this, I see it made you go WOW.
What a little tweak and such a huge impact that can make you millions.
#5 Price Anchoring in Action
Apple
One company that has successfully used price anchoring is Apple.
When they released the iPhone X, they priced it at a staggering $999, creating the perception that it was a premium product.
However, they also released the iPhone 8 at a lower price point of $699, making it seem like a great deal in comparison.
Amazon
Another example of price anchoring in action is Amazon’s
“Frequently Bought Together” feature.
This feature suggests related products that customers may be interested in purchasing, and often includes a discounted bundle price. By presenting these related products as a package deal, Amazon is able to create a perception of value and increase sales.
You can see Price anchor everywhere-left and right
When buying a car/when buying a house/whatever you buy…
The salesperson may start with a very high price, making it seem like a better deal.
#6 Final Words
Price anchoring is a powerful pricing strategy that can be used to shape customer perception, provide reference points for comparison, and differentiate products.
As you can see, price anchoring is a powerful tool in optimizing your pricing strategy and increasing sales.
Actually.
Price anchor is one of the most powerful tools in driving sales.
By setting a high initial price and following it with a lower, more reasonable price, you can create a perception of value in the minds of your customers and increase the likelihood of a sale.
Price anchor makes your offers seem like a gift.
and…
when your offers look like a gift, they will surely sell themselves…
Oh, Holy cow… How Powerful it is….
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