The Human Side to Sales

Psychological pricing Closing the sale. That term rubs me the wrong way. It turns a decision into a transaction, removing the human aspect.

People buy because of their human side; not in spite of it. With that in mind, I prefer to enroll new clients, rather than close a sale.

Your ideal client is smart. So, you need to be, too. Consider how the various psychological pricing strategies apply to your services. Take into account the significant hidden factors which determine whether, or not, they invest with you.

More is not always better. Although people claim they want a wide variety of options, research proves that’s not true. Our human brains don’t like complexity. It’s overwhelming.

The Center Stage Effect

Too many options cause your brain to feel paralyzed. When that occurs, you increase the odds of making a decision which goes against your own self-interest.

The center stage effect simplifies the decision. Rather than consider all the choices equally, you search out the middle item.

Now consider the options you offer clients. Which options are your most popular? Consider how to narrow what you offer. Then place the ideal choice in the middle of the list.

Compromise Effect

The center stage effect has a cousin called the compromise effect. With three options stacked next to each other, we avoid picking the items on the left or right. Those end options feel risky while the middle item feels safe.

Many entrepreneurs now offer packages, where they bundle various services together. Ideally, you want to offer three options.

Many entrepreneurs now offer packages, where they bundle various services together. Ideally, you want to offer three options. Read full post. #getpaidwhatyoureworth Click To Tweet

You will be surprised at how most clients choose the middle-priced package.

The Price Spread

Now that you know about the way people choose, let’s discuss how to apply psychological pricing to your options.

Psychological pricing Attraction effect

The attraction effect focuses on pricing. When you offer three packages, price your middle option closer to the more expensive package. Once again, most people choose the middle price. It’s that simple.

Starbucks applies this pricing strategy to their coffee menu. Of course, most of their customers select the middle or large option.

Let’s say the Latte at Starbucks is priced as follows:

Tall        2.00

Grande  2.66

Venti      2.95

Starbucks coffee drinkers face a difficult decision. Either they limit the amount of coffee they get or shell out more money for the size they want. Starbucks knows their loyal followers will happily spend more than reduce the amount of coffee in their cup.

Visual Information

Decision making includes conscious and subconscious factors. As you consider psychological pricing, you don’t want to overlook visual information.

Decision making includes conscious and subconscious factors. As you consider psychological pricing, you don’t want to overlook visual information. Read full post. #getpaidwhatyoureworth Click To Tweet

Ever go to an upscale restaurant where they didn’t use a dollar sign on their menu?  The dollar sign symbolizes loss rather than gain. Customers end up spending more money when the dollar sign isn’t present.

Anchoring Effect

Your mind attaches to the first number you see. That number becomes a frame of reference, or anchor, when deciding whether to sign on with you.  Consider the specific service you want to sell. Then place it next to your highest priced service. This increases the perceived value.

Psychological pricing Focus on High Value

Free webinars and free courses are readily available online. Basically, clients want to experience what you offer before they buy your program. So forget the fluff. Share something of high value before you ask them to invest in your service.

Weave in information about any special or innovative features that your service offers. As you educate them about what it’s like to work with you, vividly paint the picture about the benefits they’ll receive. Share stories and case studies which reinforce those outcomes.

Other people’s words can tip the decision in your favor. Sprinkle in testimonials and reviews on your page to add credibility.

Here’s where it’s okay to brag. Educate potential clients about the recommendations or awards you’ve received. Or, share where you’ve been featured in an interview, podcast or publication. These noteworthy items belong on your sales pages.

Psychological Pricing Insights

Psychological pricing helps you figure out your pricing strategy. This keeps you mindful about how your clients think when deciding to work with you. Remember, buying is an emotional decision which is justified with logic.

Psychological pricing keeps you mindful about how your clients think when deciding to work with you. Buying is an emotional decision which is justified with logic. Read full post. #getpaidwhatyoureworth Click To Tweet

Before they invest in your high ticket services, they need to trust that you can deliver on your promise.

Psychological pricing eases the decision for new clients. Rather than wonder if they want to work with you, they now decide how to work with you.  This pricing strategy can boost your sales and increase how much you earn.

Follow these pricing strategies for a business to be successful, and grow while keeping your passion alive. Are you tired of doing work for free because you don’t know how to charge for it? Discover how to get paid what you are worth and attract clients who understand your value. Right NOW claim your FREE RESOURCE to create value based pricing.