Anchoring Your High Priced Product

A customer comes in, they look around, realise the best product you sell is this extravagant and luxury item. It's a luxury for a reason, like most luxury items it's not a need.

People complain about it being too expensive and you agree.

Time goes by and your business stagnates, you're still getting plenty of questions about the luxury product but start to lean on decreasing the price to get that next hit of sales.

Stop.

In New York, a restaurant specializing in lobster, offers, get this a $150 lobster meal with the lot. It's nearly never purchased off the menu. The business offers up a 'lite' version of the meal. They sell loads of this.

This is a form of The Decoy Pricing Method.

You sell something so big and luxurious, but you offer up an experience at 1/10 the price.

This is lowering the transaction cost to get in the door.

The expensive version will still get purchased, and when that time comes you'll know exactly how to give that customer a better experience than the price shoppers buying the cheaper version. Practice makes perfect. Isn't perfect what you want for your top customers?

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