Every Client Says I'm Too Expensive, Anchoring
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Every Client Says I'm Too Expensive, Anchoring
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A wedding photographer whose prospects keep flinching at the quote and calling him too expensive doesn't actually have a price problem, he has a first-number problem. Many buyers walk into the consultation with some kind of reference point already in their head, a friend with a camera, a midnight article, a round figure their mom named, and that number quietly becomes the reference point your quote gets judged against. This episode works through anchoring, popularized by Daniel Kahneman and Amos Tversky, and pushed into pricing research by Dan Ariely, George Loewenstein, and Drazen Prelec, the tendency for an initial number to become a reference point that can pull later judgments toward it, especially when value is ambiguous. We get into why leading with your cheapest package can create an unfavorable reference point for everything above it, why the premium tier has to be a real offer and not a decoy that eats your credibility, and where the whole thing stops working, it bends the undecided middle, but it can't conjure money that isn't there. Monday's move: reorder your pricing so the first number a prospect sees is your highest real collection, not your cheapest.
Written versionand this week's Monday Move: The Operator's Library at mmsvegas.com.