NOTE: If you’re a brand new customer of mine – I send out a new tutorial every week about running a solopreneur business and copywriting. There’s nothing for sale this week.
This week we’re talking all about simple pricing hacks that, if you implement in your business, will lead you to make a LOT more money.
Today’s a quickie but a goodie.
Pricing Hack #3: Advanced Price Anchoring
You’ve likely heard of price anchoring.
This is where you present two or more prices in an effort to guide customers toward one particular ideal price.
It’s even covered in the book Influence by Robert Cialdini, which is one of the most important marketing & copywriting books in existence (even though it’s not written for marketers & copywriters).
I want to show you two tricks for making a $297 price look more attractive – by engaging two different pieces of psychology.
First, let’s say your course is $297.
Imagine you were selling a "lite" version of the course for $77. Customers can either get the "lite" at $77, or the "complete"/"pro" version at $297.
Now look at these two prices side-by-side:
$77 vs. $297.
What’s interesting is that you’ll get an extraordinary number of sales at $297 – in fact most of your sales will be at $297. Why? It’s all the commitment & consistency principle from Influence.
When someone sees $77, it’s affordable – especially compared to $297.
But if you’re cool with the "lite" version at $77, well, it’s not too much more to pay $297 and get the pro version.
And more often than not, most people always want the better version of something. I always do, you probably always do – it’s just how we’re wired.
We reach for $297 in this case because it’s more valuable – but doesn’t feel that much more expensive than $77.
Now imagine you have the same course for $297.
This time though you’re comparing it to a hand-holding coaching package of the same course at $4200.
Now look at those prices side-by-side:
$297 vs. $4200
Now $297 looks cheap – and like a complete bargain since it’s the same principles as the $4200 coaching package, just a DIY version of it.
We’ve just landed on the same price as before, but this time because it’s a bargain.
Interesting how that works, right?
(You also don’t need to actually offer the $4200 coaching package and can just mark it as "sold out" – but if you get customers for it, why not?)
If you’re feeling uncomfortable at a price point like $297, these two tricks (whichever you’re most comfortable with) can help ease that discomfort and make it feel easier & more natural to charge what your product is worth.
With that said, let’s ease that discomfort a little more.
Tomorrow I want to talk about how you can "justify" higher prices – in other words, how to add the elements to your copy that make people feel completely comfortable paying higher prices for your courses (and making you feel more comfortable too).
I think you’ll love this. Talk then!
— Derek