Try This When Positioning Your Price
In one of our previous posts we talked about the concept of perceptual contrast. If you missed this post then do give it a read below:
We just want to explain the concept briefly again but build upon our previous article and explain how perceptual contrast is important when having the price conversation with a buyer.
The point that we need to make clear is that the order of things will skew your perception of them.
Take these two scenarios:
- Scenario 1
- You lift a light weight item and then lift a heavy item
- Scenario 2
- You lift a heavy weight item and then lift a light item
Well because of perceptual contrast, in these scenarios above, despite the weight of the items being mirrored, a persons outlook would be different in each scenario. It’s been found that a person undertaking this test will reason that the heavy item in scenario 1 is much heavier than it actually is. This is not the same for scenario 2 despite the heavy item being the exact same weight.
This lesson is crucial when it comes to the price conversation in sales.
How do you have the price conversation at the moment? In what way do you position pricing, say when you have a more costly option and a more cost effective one?
You may see where we’re going with this. When you have the pricing conversation be mindful of perceptual contrast. Alike the person whom lifts a light object then a heavy one, the weight will seem much more than it is.
This holds true for price also, if you are to propose a more cost effective solution, followed by a more costly one, then perceptual contrast will lead to that latter solution being perceived as expensive.
So when it comes to pricing, make perceptual contrast one of your allies. Think about how you position solutions that are more expensive than others, it will often be pertinent to propose more costly solutions before those which are cheaper.
Now that you’re aware of this I’m sure you’ll use perceptual contrast to your advantage in how you position a solution and the order in which you propose it. Take caution though. We’re not saying to always propose the most expensive solution first.
Always lead with your favoured solution that does right by the customer.
In those circumstances where there is merit in each/all of the solutions that you propose then position the solutions in price descending order, ie most expensive first and most cost effective last. That way you’re using perceptual contrast to your advantage.
The things to remember and take away from this article are:
- Perceptual contrast comes into play with pricing
- In your proposition always propose first the solution that is right for the customer
- If numerous solutions all have merit then propose them in price descending order
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