Go big first up

I just smiled. One professional acknowledging the skill of another.

The sales presentation was flowing:

Then into the different service bundles:

All this wonderful stuff, you get this and this and this. Elite that, masses of that, and big business impact.

Light open question four: “What would that do for your business?”

Pause, waiting for the answer.

Then the price. Even though I was expecting it, I was still impressed with how it caught me. $35,000 for 12 months.

The classic pricing manoeuvre: make the first price big.

It anchors people’s expectations. Anything after that will look like terrific value.

Most businesses do the reverse – start low and build to high. Even though all the research proves that you make less money that way.

And so, it unfolded.

Still get some bells and whistles, a solid level of business impact, and just $2,500 per month. With a minimum of three months commitment.

Despite all my training and what I knew about anchoring I still felt the relief of a lower price.

And then a clever re-framing of the timeframes.

By making the number smaller and only for three months it suddenly looks more affordable. $7,500 vs $35,000.

It was their most popular package.

A bare minimum, ‘at least you’re making an effort’ package, and $1,500 per month.

And as I found out afterwards their lowest selling proposition.

My client was ready to sign up for Option B on the spot.

I stopped the presentation before any damage was done.

Afterwards we talked through what would maximise their business value – and the timeframes to deliver that.

And then I went back to negotiate a service bundle for the client at a rational price.

Still, it was a close thing. The power of anchoring was very effective.

As always you can reach us on 02 4023 5958 or drop Alex Meijnen an email.