BRX Pro Tip: Never Anchor Your Low Price
Stone Payton: [00:00:00] And we are back with Business RadioX Pro Tips. Lee Kantor and Stone Payton here with you. Lee, there’s a lot of conversation for many of us in the business world around this topic of pricing. One key discipline, I think, though, is never anchor your price low.
Lee Kantor: [00:00:19] Yeah. This is so important, especially if your competitors are charging way less than you charge. One of my favorite stories in this area is a plastic surgeon that was addressing an onslaught of low-priced competition. So, she was going to the market by saying she fixes $500 nose jobs. So, she was acknowledging there’s people out there that sell $500 nose jobs and letting people know that that exists. But her positioning was she fixes them because what she’s implying is they’re not that great because they need fixing later on. So, you can either pay me now or pay me later. So,I like the way that she dealt with a low-priced competitor.
Lee Kantor: [00:01:02] Another way to anchor your price higher is to address it firsthand. Go, “Hey, some people charge $1000 a month. Some people charge $10,000 a month. We’re in the middle. And here’s why.” And explain why your pricing makes sense in your world. And if you start though low and don’t explain the context, then your prospect is going to have a hard time to go along for the ride and believe you’re going to be worth it down the road, because all they’re going to remember is that they could have been getting it for less somewhere else.
Lee Kantor: [00:01:38] So, I think that it’s important if you are going to have a low priced competitor in your market, you address it, but you address it in a way that gives the prospect some context and an explanation of why low may not be the best solution for them.
