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Your product might feel expensive in a vacuum. To combat this, introduce a VIP or high-end option priced 3-5x higher than your main offering. This use of price anchoring makes the standard option appear much more reasonable and approachable by comparison, similar to how a $200 steak makes a $30 steak look like a bargain.
High prices are not inherently 'expensive'; their affordability is relative to the customer's income. For a high-earning client, a premium purchase can be an impulse buy, equivalent to a fast-food meal for an average person. This reframes pricing from absolute cost to a measure of the buyer's resources.
Small, incremental price jumps like $100 to $129 appeal to the same customer segment and fail to capture high-end buyers. A truly effective upsell tier should be 5 to 10 times the price of the previous one, designed to capture the small percentage of customers with vastly greater spending power.
People gravitate toward the middle option when given three choices, a bias known as extremeness aversion. To sell more of a specific product, frame it as the middle choice by introducing a more expensive, super-premium 'decoy' option. Its role is not to sell, but to make the target option look like a reasonable compromise.
Introduce a significantly more expensive, highly customized version of your service alongside your main offering. This price anchor makes the actual product you want to sell appear like a fantastic deal, even if it has a high price point, thereby increasing conversion rates.
To sell more of a $300 package instead of a $200 one, introduce a $500 option. Most won't buy the decoy, but its presence shifts the customer's reference point, making the $300 package appear more reasonable and valuable by comparison.
To increase average deal size, introduce a new, much higher-priced package (e.g., $100k) and pitch it as your primary offer. Commit to selling it hard. For clients who object, you can then downsell to your original core offer (now priced at $35k), which appears incredibly reasonable by comparison. This captures whales and boosts conversions on your main offer.
To make a high price seem reasonable, anchor it against a different, more expensive component of the customer's total budget that delivers less long-term value. For example, compare a $100k entertainment package to a $300k flower budget, arguing budget should align with memorability.
Even if rarely purchased, a premium one-on-one offer serves as a powerful value anchor. Its high price tag transfers a degree of perceived value to your more accessible, scalable products. To work, you must confront the high price directly with prospects before offering a downsell.
Never present a price in a vacuum. Just before revealing the investment amount, explicitly summarize the customer's key challenges and pains. Gaining their agreement on the severity of the problem anchors the price to the value of the solution, making the cost seem more reasonable in comparison.
A decoy offer is a strategically priced option designed to be ignored. Its purpose is to make your primary, more expensive offer seem more attractive and reasonably priced in comparison. This psychological trick shifts customer preference towards higher-ticket items, increasing average order value.