Properly Taking Advantage of the Psychology of Pricing
We can talk about pricing all day, every day, but when it comes down to it, it’s not just about how much you’re charging but how you’re displaying it. Most of the time we put a lot of thought into how aesthetically appealing our pricing pages look, but how they’re laid out can end up making or breaking an up-sale.
When it comes down to the way your pricing is set up, you need to think in the way of how your client will view it and remember a few key things.
Your collection titles should always be bigger than your detail text and bolded. Your client is going to want to remember the titles when it comes to ordering their ideal session. You don’t want them stumbling around trying to remember the collection names, especially if you name them something other than one, two and three.
Your collections should be laid out side by side, not top to bottom. If they go top to bottom such as the first collection below, your client is going to see Collection I first. Typically they’re going to remember which ever one they read first. But if they are laid out side by side, most likely they are going to read the middle package first, which if you have set up your packages correctly should be the package you want to sell the most. Then they will read side to side with the other packages.
Top to Bottom:
Side by Side:
Another way to price is to look into having packages that don’t necessarily go from A, B, C but offer an A, A- and C option. This basically means that your A- option won’t be good enough for your client so psychologically they will be drawn to the A and C options. Your A package will be a package that is your ideal package, one that you want to sell the most of. Your A- package will be lacking your client’s most wanted items, so it will push your clients away from wanting it and make them drawn to option A. Then you have a C option, which will be a superior option. It offers a different package for your client on top of A. You clearly will still have traditional names for them, be it 1, 2, 3 etc.
Within each package, they should be constructed as your most desirable item listed first and your second most desirable item listed last. Print rights aren’t going to mean as much to a client as a discount or a credit. This also allows you to add into your higher packages to fluff them up and make them look better, when it might only cost you a couple bucks difference in the process.
You always want your price of the collection to be the last thing they see. You want them to fall in love with the package and what’s in it before they even think about the price. If they read the price first they’re more likely to become a price shopper, but if you structure it with the price last, psychologically their mind steps in the opposite direction.
No matter how your pricing looks as far as graphics, aesthetics or titles, nothing will mean as much as how you lay them out. Small changes in the structure of your pricing setup can help clients realize they might want different packages without changing anything that’s in them. Now, these are geared more towards portrait photographers. Commercial type deals are based more on the hour but you can carry over some of the tips into that pricing as well. In order to get some more insight on the psychology behind decisions be sure to pick up a copy of Predictably Irrational by Dan Aierly. It will help you figure out ways to price and handle your business that take leverage over how your clients think.