Something to Ponder on Pricing: Contrast Theory

[ShaneKislack]

http://www.ted.com/talks/dan_ariely_...decisions.html

[ldelacruz]

Thanks Mindy. I reversed my pricing.

[brad]

Its called Top Down selling and the theory has been around forever.

You see it at Steak houses all the time.. the Filet is first on the steak menu.. the ground sirloin is at the bottom.

[dracula02]

So Mindy, how're the bookings going since you changed your strategy with pricing?

[Mindy H]

Ha...you must have mistaken me for someone who is on top of my game! :o) I did go with top down selling....but, I haven't added the whopper yet. I also changed packages and pricing structure just before rearranging my list to be in top down order....that also included a large price increase. So....orders are up, but it is hard for me to pin point the reason for the increase since so many things were all changed at one time. Plus....it has been all that long since I changed things; I hate to give anything a thumbs up without a longer history of use behind it. It's definitely not hurting anything though!

[dracula02]

That's good to hear.... I was just revisiting my prices and was looking for some new strategies

[jeffclow]

Fascinating reading......it works in other industries and apparently it can work in the wedding photography business.

Thanks for posting it. Thought provoking.

[bondarnes]

Originally Posted by jeffkohn

The only problem with this approach, some people really hate being manipulated. It's why I don't like dealing with sales people of any kind, in any industry.

The problem with your observation is that you are a guy. Only three percent of my clients are guys, so your opinion does not register to me.

[Mindy H]

Originally Posted by bondarnes

The problem with your observation is that you are a guy. Only three percent of my clients are guys, so your opinion does not register to me.

Don...you always make me smile!

I think you bring up a good point though....in general, the majority of business is women. Most photographers do not look at business from this perspective.

[DoublyDan]

Thanks Mindy, great read and inspiring to broaden my scope.

[Howard Barlow]

So, for those of you who think this method is suspect, I have a question. If you walk into the Chevy showroom looking to spend $20-30K, and the first car inside the door is a $80K Corvette, you turn around and walk out, right?

Gimmie a break.

[HotHolly]

Originally Posted by Howard Barlow

So, for those of you who think this method is suspect, I have a question. If you walk into the Chevy showroom looking to spend $20-30K, and the first car inside the door is a $80K Corvette, you turn around and walk out, right?

Gimmie a break.

Nah, you look at it, think its cool and blow by heading straight for the back to see what the cheapest car is. You see the Aveo and head back to center. Tah Dah!

[Howard Barlow]

Originally Posted by HotHolly

Nah, you look at it, think its cool and blow by heading straight for the back to see what the cheapest car is. You see the Aveo and head back to center. Tah Dah!

Ed Zachary.

[ChristopherCoy]

Tag...

And I think Holly hit it on the head. Perfect illustration!

[Mindy H]

Originally Posted by ChristopherCoy

Tag...

And I think Holly hit it on the head. Perfect illustration!

Yes! And, where would that center be if that Corvette wasn't right inside the front door of the showroom?