Five Ways to Win the Pricing Wars Using Mystical Forces

Five Ways to Win the Pricing Wars
Using Mystical Forces
2/23/2020 © 2012-2019, allies4me, All rights reserved 1

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“… we are pawns in a game whose forces we largely fail to
comprehend. We usually think of ourselves as sitting in the
driver’s seat, with ultimate control over the decisions we make
and the direction our life takes; but, alas, this perception has
more to do with our desires – with how we want to view
ourselves – than with reality.” Dan Ariely, Predictably Irrational

THE POWER OF ANCHORING

0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
October November December January
Online Newsletter Subscription Conversion Rat
Monthly 1 Year 2 Year

0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
October November December January February March
Online Newsletter Subscription Conversion Rate
Monthly 1 Year 2 Year

Why does this work?
Anchoring

THE POWER OF COMPARISON

Subscriptions:
Welcome to
The Economist Subscription Centre
Pick the type of subscription you want to buy or renew.
□ Economist.com subscription – US $59.00
One-year subscription to Economist.com.
Includes online access to all articles from The Economist since 1997.
□ Print subscription – US $125.00
One-year subscription to the print edition of The Economist.
□ Print & web subscription – US $125.00
One-year subscription to the print edition of The Economist and
online access to all articles from The Economist since 1997.
16%
84%
0%

Subscriptions:
Welcome to
16%
84%
0%
68%
32%
0%

Subscriptions:
Welcome to
16%
84%
0%

DARE TO BE ODD

Which is More Compelling?
$400 $399

It’s not about the threshold
$400 $399

It’s about precision
$400 $399

Round Number Seem Arbitrary
Non-round number seem precise
Professors:
Chris Janiszewski
Dan Uy

Odd numbers work better
$400 $399
$391
$397

vs
vs
Which Offer is More Compelling?
39% 61%
50% 50%

THE COST OF “CALL FOR QUOTE”

You are investigating purchasing a monthly software subscription you need for your job.
Your boss asked you to investigate different software options and report back on what you find.
You found three options that will meet your needs.
Basic
$299 /mo
Pro
$599 /mo
The Plan
$499 /mo
Call Us for
Quote

13.00%
12.00%
12.00%
14.00%
35.00%
14.00%
63.00%
How Much is Company C?
Less than $299/mo
$299/mo
$499/mo
$599/mo
$599/mo to $699/mo
More than $700/mo
63%
49% Believe Company C is higher than the highest published price

FREE VS REALLY REALLY REALLY CHEAP

Which One Would You Buy?
15 ₵ 1 ₵
73% 27%

Which One Would You Buy?
14 ₵ FREE
31% 69%

Who Are You Most Likely to Sell Chocolate to?
14 ₵ FREE
31% 69%

7%

7% 67%

“… we are pawns in a game whose forces we largely fail to
comprehend. We usually think of ourselves as sitting in the
driver’s seat, with ultimate control over the decisions we make
and the direction our life takes; but, alas, this perception has
more to do with our desires – with how we want to view
ourselves – than with reality.” Dan Ariely, Predictably Irrational

QUESTIONS

ALLIES4ME INBOUND MARKETING
Craig Andrews, Principal Ally
allies4me
Craig.Andrews@allies4me.com
+1.512.333.1533

Don’t Anchor Too High

Five Ways to Win the Pricing Wars Using Mystical Forces

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