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Mark Wickersham (UK)
The Power of Price Psychology
Why everything seems expensive without
contrast I often get asked what the most
powerful technique is when it comes to pricing. And I reply – “The contrast principle.”
I believe that it’s described most
effectively in the introduction to a book called Influence, Science and
Practice by Dr Robert Cialdini. The book – which I consider to be the best
book on selling that I’ve ever read – talks about the primary laws of influence. Dr Cialdini calls the
concept ‘perceptual contrast’ and describes it like this: “When we see two things in sequence
that are different from one another, we’ll tend to see the second one as more different from the first than it actually is.” It’s a theory that carries into
pricing. Human beings are clueless about price. Honestly. We don’t know the price of
anything because we don’t know the absolutes. Therefore we compare.
And our clients compare too. Without
you controlling the pricing process they will compare your price to something less and say “That’s more than I was expecting”. So you need to take control. You need
to provide the comparison. And this is where the contrast
principle comes in – letting you frame your price in a way that seems so much less. In his book Dr Cialdini uses the
example of three buckets of water to illustrate the principle. One hot, one cold and one lukewarm. He points out that when putting your hand in the cold water bucket and then in the lukewarm bucket the latter will feel warm. However first put it in the hot water
and then the lukewarm bucket and the temperate will seem cold. The Power of Price Psychology
Monthly Mentoring
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 (book)
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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