Do you know anyone who thinks cheaper sushi is better? Or, to turn to an example in the services sector, most people would agree a cheaper dentist is only better if you need a character for a horror story
Despite what your eyes tell you, a “better price” is about more than just cash value. Here are a couple of examples:
– You have to choose between two marriage counselors, but the cheaper one is your ex. Which one has the better price?
– Your favorite optometrist has an office on the 17th floor of a building that just started renovating its elevators. Her price hasn’t changed. Or has it?
– The cyber security firm next door just lowered their prices for the third time this year, they are now the cheapest in town. Do you feel like switching from your tried-and-tested cyber security provider to embrace their new offer, and why not?
These examples highlight different “hidden costs” that can skew the intuitive “cash-value comparison”. It turns out that earning the “best price” label in client’s heads has at least as much to do with ego, convenience, or risk at least as much as it does with cash and math.
I bet you can find at least one way of leveraging this into your pricing. When explaining your price, lean on a single hidden cost more than usual, and see what happens to how they see your price then. And if I lose that bet, click here, and let’s revisit that one together.