I'm sure as a photographer, you've heard you should always list your highest cost package first, but ๐๐๐จ ๐๐ฃ๐ฎ๐ค๐ฃ๐ ๐๐ซ๐๐ง ๐ฉ๐ค๐ก๐ ๐ฎ๐ค๐ช ๐ฌ๐๐ฎ? What you haven't been told is that there's a very good reason behind this piece of advice. And it's basic human psychology.
Studies show that we have a very particular way in which we make a purchase decision. We heavily lean on the initial piece of information we receive as a point of reference when making a purchase decision that involves choice.
๐๐๐ ๐๐๐ง๐จ๐ฉ ๐ฅ๐๐๐ ๐๐๐ ๐ ๐ฅ๐๐ง๐จ๐ค๐ฃ ๐จ๐๐๐จ ๐๐ฃ ๐ฎ๐ค๐ช๐ง ๐๐ฃ๐ซ๐๐จ๐ฉ๐ข๐๐ฃ๐ฉ ๐๐ช๐๐๐ ๐๐๐๐ค๐ข๐๐จ ๐ฉ๐๐๐๐ง ๐ฅ๐ค๐๐ฃ๐ฉ ๐ค๐ ๐ง๐๐๐๐ง๐๐ฃ๐๐, ๐ฃ๐ค ๐ข๐๐ฉ๐ฉ๐๐ง ๐ฌ๐๐๐ฉ ๐๐ฉ ๐๐จ ๐ฅ๐ง๐๐๐๐ ๐๐ฉ.
This point of reference is also known as a โprice anchor.โ
So, for example, maybe youโre shopping for a new host for your website. The first package presented as the price anchor is $700/year. Itโs got everything you need plus more! Then youโre presented with the second package thatโs $400/year. Itโs got what youโll need to get your website going and serve the needs of your business. It may not have many bells and whistles, but itโs got what you need. And in comparison to the top package, this feels like more of a reasonable investment and makes more sense, making you more likely to purchase this second package than if you hadnโt seen the first package at all.
The first number your client sees is their reference point and they make their investment decision based on that number. If you start with your lowest-priced package first, the increasing numbers donโt feel reasonable. They start to sting because the reference point didnโt set the bar high enough and itโs very unlikely that a purchase beyond your lowest package will ever be made.
Now that you know the "why" behind this common piece of advice, I hope the foundation to your business decisions is a bit stronger!
So, tell me! Did you know the reason you should list your highest cost package first before you found this post?
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