Pricing Mistakes - Cool Article, Read It and Make More $
Hubspot just published an article about pricing mistakes. What I'm quoting is cool, what came after is even cooler but too long to quote. The article lives at this url: 7 Pricing Mistakes That Can Seriously Stifle Sales.
The cool thing? If you're running your own business, you can take something from this article right now, implement it and make more money for no extra work (except price position and price changes).
Here it goes:
When is one Budweiser worth more than another? Logic says that since they're the same product, the answer should be never, but this research study in New York Times Magazine proves that this just isn't the case. Researchers found that customers were more willing to pay higher prices for the same type of beer when it was sold from an upscale hotel than when it was sold from a run-down grocer (despite the fact that the beer was exactly the same). The lead researcher Richard Thaler was surprised that consumers had no objections to the higher prices when asked what they would pay.
What does this mean for you? Your prices can be raised by simply changing the context in which you're selling. I've noted in a previous article on raising rates that the very moment I started calling myself a "content strategist for software startups" rather than a generic title of "freelance writer," I was able to double my standing rate for client work. Are you selling products, or full-feature solutions? Is your ebook for sale, or is your complete training toolkit available for customers and ready to solve all their problems? These wording choices may seem trivial, but on the web they're often your best way to express your product's value; and as we've seen from the research, part of your product's value is based off of the context in which customers view it.
The cool thing? If you're running your own business, you can take something from this article right now, implement it and make more money for no extra work (except price position and price changes).
Here it goes:
When is one Budweiser worth more than another? Logic says that since they're the same product, the answer should be never, but this research study in New York Times Magazine proves that this just isn't the case. Researchers found that customers were more willing to pay higher prices for the same type of beer when it was sold from an upscale hotel than when it was sold from a run-down grocer (despite the fact that the beer was exactly the same). The lead researcher Richard Thaler was surprised that consumers had no objections to the higher prices when asked what they would pay.
What does this mean for you? Your prices can be raised by simply changing the context in which you're selling. I've noted in a previous article on raising rates that the very moment I started calling myself a "content strategist for software startups" rather than a generic title of "freelance writer," I was able to double my standing rate for client work. Are you selling products, or full-feature solutions? Is your ebook for sale, or is your complete training toolkit available for customers and ready to solve all their problems? These wording choices may seem trivial, but on the web they're often your best way to express your product's value; and as we've seen from the research, part of your product's value is based off of the context in which customers view it.