This small business thinking really pisses me off
I'm talking discounting
Discounting... 'cause they can... just for the hell of it
*Seriously, discounting is a powerful, deep dive, pricing strategy that should only be used by experts
How many times have you been offered a discount...
WITHOUT EVEN ASKING!
Think about it
Too often I meet people who think discounting is the only way to secure business
Why on earth do people think that?
Perhaps it's a simple case of a "discounting mentality"?
They might have worked for someone with a discounting mentality and its rubbed off
Is it because rejection freaks 'em out? (Why take it personally)
Maybe they've had one or two price objections so they automatically "preempt the objection" with a discount
Here's what I really think... They just don't know any better
What ever the reason...
Here's the utter and total truth
Everything to do with price is psychological
WRITE language can help make price objections "take a hike"
Here's a suggestion
RE-WORD YOUR PRICES
Some of my favourite words for cost or price are
HOSTING FEE becomes MAINTENANCE FEE
HIGH PERFORMANCE becomes LOW MAINTENANCE
PLUS GST becomes INCLUDES GST
PRICE becomes INVESTMENT
COST becomes VALUE
Does this stuff matter?
Sure does... works too
For one of my clients
Sales increased 20% on a subscription product
By simply changing "$5.00 Fee" to "a small $5 fee"
(notice there were no capital letters either?)
Here's another strategy to beat the objectors
RE-FRAME YOUR PRODUCTS VALUE
How can you show the purchase spread out over time
Like a magazine subscription
In the buyer's mind, $1 a day might be more obtainable than $365 a year!
And $84 dollars a month appears so much less than $1000 for a full year
Even though they work out roughly the same
Spending $4 on a coffee a day is easy to justify
Etc, etc, etc
What can you re-frame?
Think about it
Now... This is my favourite strategy (so simple too)
VERBAL & VISUAL PRESENTATION
Research shows that removing commas can influence people
So they'll view your price as cheaper (Visual Presentation)
When you remove a comma you reduce the phonetic length of your price too (Verbal Presentation)
$1,499 reads as ONE THOUSAND, FOUR HUNDRED AND NINETY NINE
THATS A MASSIVE TEN SYLLABLES
Looks and sounds expensive right
$1499 read as fourteen ninety nine
I just halved it to only 5 syllables
(notice I removed the capital letters too)
It works visually as well
I just made this number appear smaller right
Even dropping the $ sign works
(Next time you visit a restaurant you'll notice this trick)
Hot tip - Never type your price BOLD or in CAPS
I have so many Cash Flow enhancing strategies up my sleeve
This lot really is just the tip of the iceberg
When you’re ready to grow your cash flow
We should talk
When you're good to go contact me here for a free Cash Flow Strategy Review
I'm sure I'll give you heaps of value
*As stated, discounting as a strategy is for expert use only, use by amateurs without guidance from a professional can cause major cash flow crisis