I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
Anchors Away
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Hi Reader, Ever watch an infomercial and get sucked into believing the amazing deal on offer? I sure have. Remember Richard Simmons’ Deal-a-Meal? How about the Shamwow or Chuck Norris' Total Gym? One of the hallmarks of any infomercial is the infamous and all important question, “How much would you expect to pay,” followed by a list of prices. This technique is all about what's called the Anchoring Effect. As humans, we are deeply influenced by the first piece of information we receive when it comes to making comparisons or judgments. So, those how-much-would-you-expect-to-pay prices serve to anchor our perceived value of whatever is on sale. When we are then pitched an item at a much, much lower price, we can’t help but think what an amazing deal it is. But maybe infomercials aren’t your thing. If so, that's too bad, because you can learn a lot about pricing and sales tactics from watching the best of them. But, ok, let's forget infomercials. How about shopping for a car? TV? Computer? Cellphone? You know that Manufacturer’s Suggested Retail Price (MSRP) you’re shown? It's another example of anchoring to influence our perceived value and price sensitivity. But this tactic isn’t just employed by retailers and shady infomercials. It’s used across the board. Heck, you may be employing some version of it in your business, too. Do you:
As you can see, anchoring is prevalent in the marketplace. And, it doesn't just apply to products but to all types of offers and offerings. While anchoring can certainly be used in ways that feel truly manipulative, it can also, just as easily, be used to legitimately help prospects better understand the value of what’s on sale. Needs some guidance on the best way to structure your pricing and drive conversion? Let's talk! Until next week, PS - If you missed it, last week I broke down another common pricing tactic, the Decoy Effect. Sharing is caring. Please pass this message on. Your success is our strategy!No longer want to receive my newsletter but don't want to miss my special offers and announcements? Click here. |
Easily Said & Done
I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
Hi Reader, Something I've been enjoying of late are multiple influencers showcasing the limits of ChatGPT and the like. One guy asks it some pretty basic questions, such as to name a number between one and one hundred that includes the letter 'a.' (Spoiler alert: there aren't any). ChatGPT lies to his face over and over again. Another one provides examples of business fails due to AI. Some are pretty extraordinary. But here's the thing, this isn't just a harmless gimmick, it's a warning cry,...
Have you seen the video of McDonald's CEO Chris Kempczinski trying to promote the new Big Arch burger ahead of its March 3rd launch? How about any of the many, many videos or memes negging on it for a host of reasons, including how Kempczinski refers to the burger as "a delicious product" or his failure to take a real bite of it, seeming almost disgusted by it. To me, there are three great marketing stories going on here. 1. Going Viral Isn't the Goal Yes, there is such a thing as bad PR and...
This fall my mom was diagnosed with mild-to-moderate dementia. While sad, it did not come as a surprise. It's one reason I sold her house and we moved in together late last summer. At first, I planned outings to the Y and other senior programs, scheduled visits from family and friends, coordinated physical therapy appointments, and designed little daily activities to keep her engaged and stimulated. This winter it's gotten harder and harder to get mom out of bed let alone dressed and out the...