Internet Marketing – The appearance of truth!? -1

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 
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!
Price accounting and consulting
services more profitably!
Silvia at IFRSbox.
If you are in finance and not on her
FREE list (WHY NOT?):

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