8 Questions
According to the video, why do people fear raising their prices?
All of the above
What is the strategy mentioned in the video for increasing prices?
All of the above
Why does the video suggest keeping the emotional anchor price?
To make customers feel comfortable and safe
What is the benefit of offering a discount for pre-paying?
It incentivizes customers to pay immediately
Which strategy does the tactical format for raising prices involve?
Offering customers a choice between paying in installments or a higher upfront price
What is the purpose of setting a higher price anchor?
To create a discount perception
Why is it important to give customers their preferred home base price?
To create emotional comfort for customers
What is the purpose of clearing the pipeline by announcing price increases?
To create scarcity and urgency
Study Notes
Tactical Format for Raising Prices
- The process outlined in the text explains how to raise prices effectively.
- The strategy involves offering customers a choice between paying in installments or a higher upfront price.
- Uneven splits are preferred because they allow for more cash upfront.
- The price anchor is set higher than the desired price to create a discount perception.
- The sales team is more comfortable selling at the price anchor, making it easier for them to sell.
- Emotional comfort for customers is important, so giving them their preferred home base price is necessary.
- The prepayment discount is the actual price the business is aiming for.
- The discrepancy between today's payment and the total payment over time helps create a compelling offer.
- For larger price increases, breaking it down into smaller increments with an upfront prepayment discount is effective.
- Four key points to consistently use in this strategy are: giving home base price, setting a higher price anchor, offering a marginal prepayment discount, and structuring pricing to raise the price and get more prepayments.
- Clearing the pipeline by announcing price increases creates scarcity and urgency, motivating customers to take action.
- Clearing the pipeline also addresses any confusion or objections about different prices by informing customers in advance.
Test your knowledge on the tactical format for raising prices with this quiz. Explore strategies such as offering installment payment options, setting a higher price anchor, and providing prepayment discounts. Learn how to effectively raise prices while maintaining customer satisfaction and generating more prepayments. Challenge yourself with questions covering key points and techniques in this pricing strategy.
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