Psychological Selling and Pricing

Psychological selling & Pricing

People make decisions emotionally● Feeling● Need ● Emotion ● Not on logical thought process

What is the emotional hot button here?

Emotions linked to the buying decision

● Greed. "If I make a decision now, I will be rewarded."

● Fear. "If I don't make a decision now, I'm toast."

● Altruism. "If I make a decision now, I will help others."

● Envy. "If I don't make a decision now, my competition will win."

● Pride. "If I make a decision now, I will look smart."

● Shame. "If I don't make a decision now, I will look stupid."

People justify decisions with facts1. Product reaches the customer2. He falls in love with it3. The customer can’t bring himself to buy the product based on

emotions4. So.. he reads the technical details to rationalize the purchase

People are egocentricWhat’s in it for me?

How does this give me feelings or personal worth?

People think in terms of peopleIn selling people should be featured through:● Names● Personal pronouns● Quotes● Testimonials● Stories● Photos of satisfied customers

People love to buy

● To discover new products and experiences

● People hate to be tricked

● Instead of selling - help them

People like to see it, hear it, touch it● Some never buy online because of this● Unless they have had a satisfactory buying experience

Is there some sensory experience that is missing from our sales message?

Pricing

Competitive pricing● Assess how others charge● What are their values and features

Setting prices near to competitor’s● Customers won’t rule out for being too expensive● Avoid the risk of starting a price war

Premium pricing● Setting a slightly higher price● Higher price suggests better quality● Effective in a market with barriers or for small businessesWith higher unit costs, the company can focus on adding value to

product

Discount pricing strategy● Lowering the price● Efficient if offering a new service or product● Sacrificing short-term profits● As volumes grow - unit costs fall● Discourages others from entering this marketWorks particularly well with commodity products

Produced by Arturs ViksneMarketing AssistantHieroglifs International