Price

Price

Dear Team,

I just finished taking a course in price psychology by Andrew Luttrell, Ph.D. If you are interested in taking the course yourself, then click here. If not, I can save you hours of time by summarizing the key topics for you. 

 

Should you price the ending at 99 or 95?

If the price of your product is under $50, use .99

If the price of your product is over $50, use .95. 

Don’t ever use commas when pricing. 

$1586    $1,586

Don’t use decimals for prices over $99. 

If you sell luxury goods, use whole numbers. If you sell utilities, don’t use whole numbers. 



Use the color red in the price to help increase sales.

 

When presenting price options, always start with the highest price first, then work your way down. 

 

When you have an anchor price, use a whole number so it’s easy to subtract and the customer can easily know how much they are saving. 

Also, decrease the left digit of your price to make it seem like a bigger discount compared to the anchor price. 

Decrease the left digit of your price to make it seem like a bigger discount compared to the anchor price. 

This is a study on price decoy:

Below are ideas for our pricing models that we can test.:

 

 

Plan

Plan

Dear Team,

I recently learned that humans are like ships in the middle of the ocean. If you don’t give it a captain, crew, or a specific destination to pursue, then the ship will drift and be taken by the currents of mother nature. The chances that the currents will take them to the exact location they want to visit will be close to none. BUT it has been proven that if your ship has a captain, crew, and a plan of the exact location you want to pursue, then it is almost certain that you will reach your destination. 

I understand that we are not expert sailors and that this is our first journey together. Therefore let’s first start with a small goal. Let’s master our craft before we sail the open seas. I propose that our small goal would be to make this a million-dollar company by the end of 12 months. This is the plan:

  • Goal 1 = Get our first paying client.
  • Goal 2 = Get 10 paying clients.
  • Goal 3 = Get 3 Clients a day.

Question… is it possible to get 3 clients a day with our awesome service? Yes, it’s very possible and I believe you know it as well. 

Guess what, 3 clients/day *(365 days in a year) = 1095 clients in a year. 

1095 * ($150 price of service) =  $164,250. 

If we keep our clients happy, then the following year we will bring in $164,250 * (12months) = $1,971,000/ year.

We have a ship (our business model) we have a captain, crew, and a clear goal of the destination we want to achieve. Thus, the odds are in our favor. Let’s make this happen. Let’s start sailing.

Why

Why

Dear Team,

I’m honored and grateful that you will embark in this entrepreneurial journey with me. Let’s be clear, we have a common goal. I wish we were in the business of curing cancer or creating world peace. We are not. All we do is provide video content for small businesses, so why do I work so hard for such an un-inspiring business model? Let’s be frank, I do it for the money. I work hard and will continue to work hard because I believe it’s my obligation to provide for my family. I believe my family, and my future kids deserve the best. I also want to be financially wealthy so that if I want to buy a $165,000 sports car, then I will. If I want to take 3 months off and travel the world, then I will and you should also do the same if that’s what you want. Don’t settle. We only have one life. 

This is my WHY, and I imagine that it’s the same for you. Winter will come and we are going to be tested during difficult times, but I promise you that with hard work, being able to adapt and learn quickly, persistence, and a continued understanding of commerce, that we will thrive and enjoy the fruits of our labor. Just like Maslow’s hierarchy of needs, we need to focus on the fundamentals. Let’s work hard so we can be financially wealthy to provide food, shelter, and security for ourselves and our loved ones, and only then we can have the liberty to embark on a new journey to pursue self-actualization and meaningful goals that will make this world a better place. 

Action Step: Don’t forget your WHY.

Price

Price

Dear Team, I just finished taking a course in price psychology by Andrew Luttrell, Ph.D. If you are interested in taking the course yourself, then click here. If not, I can save you hours of time by summarizing the key topics for you.    Should you price the ending at...

Plan

Plan

Dear Team, I recently learned that humans are like ships in the middle of the ocean. If you don’t give it a captain, crew, or a specific destination to pursue, then the ship will drift and be taken by the currents of mother nature. The chances that the currents will...

Why

Why

Dear Team, I’m honored and grateful that you will embark in this entrepreneurial journey with me. Let’s be clear, we have a common goal. I wish we were in the business of curing cancer or creating world peace. We are not. All we do is provide video content for small...