Morning,

Let's talk about money.

Specifically, the part in an offer where you ask for it and how to go about price framing that makes it seem like they're paying a lot less than they really are because, after all, the game of marketing is a game of perceptions.

Typically speaking, all things being equal, the higher the price, the lower the conversion rate.

So, while a $5 offer can convert at, say, 10%, a $27 offer will be at 5%, and a $100 offer will be at 1%.

The more we ask them to pay, the less they pay.

This obviously kills conversions, which ain't good for binnis.

So what do we do? Well, you can spend a whole lot of time doing all sorts of wrestling with them in the close, from WWE to Greko Roman to Olympic Wrestling, you should do all of it...

...But at the end of the day, that price point will make you tap the fuck out and prevent you from hitting higher conversion points.

The reason is that with psychological economics, simply put, the $100 is a lot more valuable than $5 because they can buy, and thus, $100 has a lot more trade-offs; the more trade-offs off, the lower the conversion rate. Plus, there's this other thing about replacement money, meaning how fast can they replace that money, which puts us into the realm of disposable income.

Anyway, so the higher the price, the lower the conversion rate, yet the higher the price, the higher the AOV contribution (average order contribution).

The conundrum of sorts.

So, how do we increase the price while keeping the perception of the cost low?

You simply change the price frame.

Here's how I do it.

Say an offer is $100.

So instead of you saying, it's $100, "what's it worth it to you?" type of deal.

You simply look at the delivery mechanism and say it's for 4 weeks. It can be a 4-week "thing", "take 4 weeks", or whatever.

Well, shit, now it's $25 a week for 4 weeks.

The mind sees $25, not $100, and thus is pegged down at $25.

In their minds, they're spending $25, not $100.

Now, we've changed the price of the frame.

Say you have a bottle of supplements, it's 100 pills, and $100, well now it's just $1 per dose.

So on and so forth.

Break it down, and break down the resistance of the price.

Every transaction needs a justification, a story, and an explanation to itself as to why it's a good idea.

The thing is, they'll rarely do this on their own, and thus, you have to create that story they tell
themselves and thus give them the ammo to create that justification.

And price framing is one of those ways.

Now of course, be ethical and compliant here and somewhere on the page, disclose the TOTAL price, and it'll be fine.

Have a good one,

Alen

P.S. Here's the link to the post about all this in the NHB FB group.