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, Last week I welcomed Rose Desauguste back into my classroom and her session on future-proofing your business did not disappoint. (It never does!) Rose is the founder & CEO of Nectar Digital Group, a company that helps small and medium-sized businesses grow through innovation consulting and strategy, and by providing Fractional CMO and COO services. Here are three game-changing approaches to leveraging AI, depending upon how 'all-in' you want to go, courtesy of Rose's deep knowledge...
Hi Reader, A common question I get in class and with clients is: How do I position a price increase to my customers or clients? I'm going to share some tips, but here's what I want you to remember: The secret to a smooth change in pricing or policies isn't about the price or details, but in where you direct people's attention. When Apple or Google release their newest phone models what you hear about is all the new improvements: the better camera, longer battery life, sleek new design, and so...
I'm halfway through teaching another women's start-up course for NYC's Small Business Services Department and one of the biggest topics of conversations we've had is how to keep the momentum going once class ends. This isn't just something students struggle with. Every entrepreneur I know, including me, wrestles with keeping things growing while keeping their business going. Here are some of the strategies I use and/or recommend to hack your schedule and to-do lists: Time BlockingDivide your...