Mark Wickersham (UK): Effective Pricing for Accountants
How verisimilitude – the appearance of
truth – can improve your pricing Today I’d like you to think about why
you should use verisimilitude – the appearance of truth – in your pricing. To help, I’ll first need to tell you a
little about the research behind it, and then I’ll explain how you can apply what you’ve learned to reap the rewards in your own business. Rounded prices rely on emotions,
non-rounded on cognition In 2015, Wadhwa and Zhang – two
Assistant Professors of Marketing – wrote: “Because rounded numbers are more fluently processed, rounded prices encourage reliance on feelings. In contrast, because non-rounded numbers are disfluently processed, non-rounded prices encourage reliance on cognition.” Theirs was the first
research that examined the impact of rounded prices on people’s decision to buy a product – and more specifically that was based on whether the decision was driven by feelings or by cognition. But what on earth does that mean in lay
terms? So what does that mean for accounting
professionals? Essentially, their findings mean that
whether we should offer a rounded price or not depends on whether people will base their decision to buy whatever it is we’re selling on emotion, or logic. To illustrate, here’s a concrete
example. First, imagine the number
£19.86. It’s what’s known as a more precise number. And what the research
shows is that a precise number is better if we’re purchasing things that are logical. In contrast, £19 would be
better if we were purchasing something based on emotions. A good example might be food. When we buy we’re thinking about our stomachs and so we tend to buy based on emotion. (That’s why – if you think for a moment
about the last
good-quality restaurant you visited – they probably used rounded numbers in their pricing.) The more precise the price, the less
people are likely to argue You can learn more about why you should
never reveal your headline price by watching this: The Power of Price Psychology
Check it out NOW! In case you missed this: (More of Mark!)
Better pricing = higher profits
If you have a service business, you can
earn much more from this series. Also, Mark runs a programme called
Price Consulting, and he teaches
accountants/bookkeepers how to help their customers with their pricing. Thank you for the positive response to
posts on this topic and the action taken. Please tell your friends!
Those links again:
The complete guide to menu pricing – NEW!
(video training programme) Effective Pricing for Accountants
Monthly Mentoring
How to build a successful bookkeeping
business (book) How to build a successful bookkeeping
business (video training programme) The Value Pricing System
Grab them NOW and claim the true income
that you earn!
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