Jan 24, 2020
This show is all about how to
stack products and services to make them the most appealing to your
potential customers. Those of you who've heard me speak, have heard
me talk about this before (especially in relation to
The Truth About
Pricing) and the
concepts of anchoring, adjustment, and relativity. I share examples
of how certain numbers can get stuck in our subconscious and in
comparison to the real price, we feel that we are getting a
bargain.
I also talk about how
infomercials use several combined behavioral economics techniques
in their presentations. To show how I practice what I preach,
you’ll learn about the pricing strategies for the new BE Thoughtful
Revolution Membership group. I also give you an actionable example
of how you can increase your prices by 10% and feel great about it.
As always, this episode is packed with real world information and
examples that correlate with behavioral principles you can use in
your life and business.
I've had listeners asking about
a membership group for a while now, and the BE Thoughtful
Revolution Membership Group is now open. I’m so excited about this
membership and all of the benefits it has to
offer.
Members get direct access to me
for all of your behavioral economics questions in our dedicated
Facebook Community. This is where I'll be doing live Q&As,
training, and all sorts of other stuff.
You’ll also get access to The
Brainy Courses. The Brainy Mindset Course and Brainy Pricing Course
are $399 each. (That’s a combined value of $800.) You’ll also get
exclusive content from The Brainy Business, and members get special
discounts on workshops, products, and strategy sessions and will be
the first to know when new stuff is coming out.
The membership is $99 a month,
but the first 50 people to sign up with code LAUNCH get 60% off and
will only pay $39 a month. Lock in that price before it’s
gone!
CLICK HERE FOR YOUR FREE
DOWNLOAD
Show Notes:
- [05:36] Stacking and bundling
products and services. Anchoring, adjustment, and relativity are
the real concepts at play in this process.
- [06:43] Anchoring and
adjustment is about our brains being swayed by numbers.
- [07:11] The Snickers study I
share all the time is part of this concept of
anchoring.
- [07:28] The brain latches onto
the number and will move up or down from there.
- [08:15] When an item is
limited, people will actually buy more. This is all because of
anchoring, and even unrelated numbers can have an impact on
this.
- [09:03] If you throw in a
larger number in your description, it makes the price seem
smaller.
- [09:43] The brain kind of
glosses over what it hears at any given time because there is a lot
going on, but it hears a number and latches onto it for a
while.
- [10:01] Think of these concepts
in examples of infomercials. Your brain likely didn’t have any
preset number for what it thought that random item was worth or
what you would pay for it.
- [12:26] If you ever discount
something, or offer a special, make sure you talk about the higher
number first.
- [12:47] When I introduced the
group, I talked about the benefits to you first, like “people have
been asking for it” which is a combination of herding and
priming.
- [13:08] I mentioned you would
get access to the Brainy Mindset Course and Brainy Pricing Course,
which are both $399 for a combined value of $800.
- [14:01] After sharing the value
just in the courses being at $800, I shared the regular rate of the
group, which is just 99 a month. And THEN I said that the first 50
people could use a code to claim their spot at only $39 a month.
(That order was intentional, and it matters)
- [14:38] You need to spell it
out to people in the right order - and know that saying things are
“priceless” doesn’t help your anchoring case.
- [15:21] Instead of saying
something is priceless, find a way to quantify that
value.
- [16:09] Relativity is where the
second number feels lower or higher based on how it compares
relative to the first number.
- [17:16] The way numbers are
shared via framing, relativity and anchoring make all the
difference in how the customer reacts.
- [17:36] When you have multiple
options available and want to showcase one of them. You don't want
to show the least expensive thing first and work your way up.
Always start big and work your way down.
- [18:36] Find the best product
that you want to sell and has the most value for clients. Create a
high anchor to present before that. Add 10% to the amount that
you're going to charge.
- [25:17] You could also create a
totally different third product. You don't have to
though.
- [26:29] You can use the third
option when you are selling physical objects like
sofas.
- [28:18] This can make the best
option seem like the obvious best choice. It helps customers to
feel good about the investment.
- [29:29] The context and
relativity all matters and makes a difference. It takes a little
work on the front end to make sure you are presenting the options
in the right order to help the customer make their best
choice.
- [30:38] Bundles are great tools
and can be oh so useful. Often, bundles are provided with a
discount and that is prônant where your mind goes first, but it
isn’t required.
- [31:29] If you make it easy for
a customer to find everything they need with one or two clicks, you
can charge a premium for that. Convenience has
value.
- [33:47] “We offer three
courses, the first one is $500 and it is on XYZ, there is also a
$600 course on ABC and an $800 course on being awesome. Which would
you like to start with?” In that case, you are leading them to the
$500 course, because it became the anchor.
- [36:26] If you want the bundle
to be the best choice and a clear best offer, you can have a
discount included. Start by defining the main thing and build
everything around making that look as good as possible.
- [36:55] The way you talk about
it, the framing, shifts based on what you want to showcase and what
most people should pick.
- [37:52] You can build your
offering to be anything you want it to be and if you understand the
value and can properly communicate it, you will find people to buy
what you are selling.
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