Today’s Underdog Millionaire Tip Sheet
is all about the decoy.
…hence my sweet subject line.
And we are not talking about hunting at
all. We are going to talk about using a
decoy in your pricing strategy to help
your customer make a value decision when
making a purchase.
This is based on a university study
completed where 3 choices are given to
the customer.
Let’s use a magazine subscription as an
example:
Choice A- Internet only Subscription $25
Choice B- Internet option +Subscription $75
Choice C- Magazine subscription only $75
Results:
Everyone ignored option C, approximately 80%
of the people chose option B and a small
portion chose option A.
Option A was the decoy.
When we make a decision to buy something we
don’t have an absolute reference for what
things are worth.
Therefore we assign value to things based on
our experiences. If you add a decoy option
you are immediately adding a reference for
the customer to decided on.
When they re-did the study with only 2 options
of A and C, most people picked the cheaper
A option.
There is a lot of psychology going on here
that I will not get into here, but this can be
a great pricing strategy of you are trying
to boost sales and you have combination
options to offer your customers.
If you want even more ways to completely
dominate your industry and get rid of lame
pricing strategy forever, float your duck
on over to:
http://www.product-pricing-strategy.com
Until tomorrow,
Joshua Black
*******************************************
Copyright 2010, Outer Limit Productions LLC.
All rights reserved.
Download these other great products to help
your business earn huge piles of moolah:
http://www.product-pricing-strategy.com
http://www.how-to-business-network.com
http://www.ranking-higher-seo.com
http://www.UnderdogMillionaire.com/blog
http://www.sales-letter-system.com
http://www.closing-the-sale.com
http://www.information-product-report.com
http://www.UltimateUSPcreator.com
http://www.underdog-success-formula.com
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