The illusion of choice is a very powerful marketing tool that we leveraged in our business.
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TL;DR
Learn how to leverage the illusion of choice in marketing to increase sales and justify higher prices without losing customers.
Chapters
- 0:00Introduction to Pricing Strategy01
- 0:10The 30% Price Increase02
- 0:20The Key Question to Ask Customers03
- 0:30Understanding Customer Preferences04
- 0:40Creating the Illusion of Choice05
- 0:50The Concept of Fake Choice06
- 1:00Conclusion and Key Takeaways07
Transcript
Never, ever, ever raise your prices until you understand this one thing. We raised our prices by 30% and we expected sales to crash or at least dip and none of that happened. Instead, sales went up and we made more money. It's because of this one sentence we added to our product page. And by the end of this video, you'll know what the sentence is and you'll know exactly how to do the same thing to hopefully make a bunch of money.
you'll know what the sentence is and you'll know exactly how to do the same thing to hopefully make a bunch of money. So anytime someone came to buy one of our supplements on the product page, we wouldn't show them the price immediately. The first thing we would do is ask them a very simple one sentence question. That question was, which of the following best describes your preferences today?
That question was, which of the following best describes your preferences today? Option A, wanting faster results or option B, wanting a lower price, the lowest price. So if they chose option A, wanting faster results, in their head, they've already justified that results are more important to them than price.
that results are more important to them than price. If they choose option B, wanting the lowest price, they've already assumed in their head that they're getting the best price on the next screen and that there's more expensive options not being shown to them. So we've created this illusion of choice. It's called fake choice in marketing. And what it does is it allows the customer to believe
And what it does is it allows the customer to believe that they are getting the exact outcome that they want and that they dictated that outcome. And that's what allows you to charge whatever you want. So free game.
And that's what allows you to charge whatever you want. So free game.
So free game.
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