Our Anchoring Bias Creates an Expectation That Can Be Used to Make A High Price or Time Frame Seem Reasonable Even When It Is Not. Simply by Initially Thinking of Higher Numbers, All Future Numbers Will Be Skewed Up and By the Anchoring Effect.
This week’s top stories include small business advice covering the following four topics:
- Why Hiring a Chief-of-Staff Could Be a Game-Changer for Your Startup
- Marketers, Is There Ad Fraud In Your Future?
- Why Ending Your Price in An Odd Number Will Increase Your Sales
- 5 Predictions for America's Small Businesses in the Biden Era
Each week we scour all the top business-related magazines and newspapers for articles with the best advice for the small business owner, so you do not have to.
Your Pricing Strategy Doesn’t Have to Be an Entirely Emotional or By-The-Numbers Exercise. The Most Important Thing Is to Offer Quality Products/Services and Ensure That Customers Perceive That Doing Business with You Is on The Right Side of the “Risk Vs. Reward” Equation.
Consumers have been conditioned to focus more on what they are spending than on what they are buying. Consumers buy things today not because they need them, but because they are convinced that they can get it for a great price.
If you are facing stagnant or declining sales on one or more products and services, it may be because the way you are either packaging or pricing (or both) is not resonating with your prospects and customers.
One of the biggest obstacles that prevent a buyer from making a purchase decision is the fear that they will pay too much. From the seller's perspective, there is also the fear of pricing a product or service too high or low leaving money on the table.
In a perfect world, what a customer spends for something should be based on their opportunity costs. However, customers are irrational when it comes to money. By distorting a customer perception of their opportunity cost, a savvy business can make the customer spend more and be happy to do it.
Each customer is different in terms of their needs and ability to pay. There is no rule that says that every customer needs to pay the same price for the same product or service. Working on a government contract has more overhead than working on a commercial account. As such, the billing rate we used […]