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Who knows. Most people chose the web option because it was cheaper. When you offer different versions of your product, people will naturally compare those options. To guide people toward the more expensive version, you can take the same approach. By adding a similar, yet worse, version of your expensive product, you influence the comparison process.

Suddenly your expensive product becomes more appealing. Even if you reduce the perceived magnitude of your price, customers might be stagnant. You should give them a nudge. This section will teach you some psychological tactics that can motivate people to buy. Considering those two factors, you can see why Uber — a ride-sharing service — revolutionized the taxi industry. In traditional taxi rides, the saliency of payment is very high. You see a meter constantly rising.

Each minute evokes an increasingly painful sensation. Plus, at the end of the ride, the taxi driver makes you pay by cash or credit card. Uber is different.

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No visual meter. No physical payments. Everything is automatically charged to your card. Much less pain. Credit card processing is one tactic to reduce the pain of paying, but you can reduce that pain in other ways too.

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This section will give you a few ideas. The pain of paying can be triggered pretty easily. Before you start removing dollar signs, you should consider the overall clarity of your price. Oftentimes, you need a dollar sign to indicate that your number is, indeed, a price. Only use this tactic in formats where customers will expect a price to appear e. When possible, your customers should pay before they use your product or service. Prepayments benefit all parties involved. Pretty helpful. Second, people will be happier with your product.

That insight can be helpful with monthly subscriptions. If you charge customers monthly payments, you should charge them at the beginning of the month and frame your message in a forward-looking manner. To reduce the pain of paying, consider bundling your product. As Khan and Dhar explain:. However, since no such guilt is associated with the purchase of utilitarian items, framing the discount on utilitarian component of the bundle has little additional impact. If you can only add a utilitarian product, then describe a hedonic use for that product.

Inexpensive products reduce the perceived value of expensive products. Brough and Chernev asked people to choose between a home gym and a 1-year gym membership. The fitness DVD reduced the perceived value of the home gym. When describing your product, avoid references to money. Instead, mention a concept that has a much greater benefit: time. They alternated three signs advertising the stand, each emphasizing a particular quality:.

When writing copy, emphasize the enjoyable time that people will spend with your product. Since the money is refundable, customers might not give too much additional resistance.

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More importantly, that payment medium will distort the essence of that money. If you implement that strategy, you might also want to match customer deposits by a certain percentage. Second, you create an off-balance conversion between their money and account value. Dreze and Nunes explain that payment mediums become more effective when consumers have trouble converting the values:.

If this were the case, we would expect that combined-currency prices across the currencies lose their efficacy. Customers care about the perceived magnitude of your price i. But they also care about the perceived fairness of your price.

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Even if your price is low, customers could still perceive it to be unfair. Likewise, customers could still perceive high prices to be fair — depending on a few factors. That information will trigger a more empathetic perception of your price. You might be familiar with the paradox of choice. Once people choose an option, they lose the benefits offered in the other options. If options are similar, then people will receive similar benefits with any option.

So loss aversion is lower. In one study, Kim, Novemskey, and Dhar asked two groups of participants if they wanted to purchase a pack of gum. Each group had two options:. Despite a trivial difference, people were much more likely to choose a pack of gum when a price difference existed. So why did that happen? Paradoxically, adding a small price difference increased the perceived similarity. As a result, they seek out differentiating characteristics.

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Thus, the product differences become more salient. Customers can differentiate the products based on price. Because customers focus less attention on product differences, the two products maintain a higher degree of similarity. And that similarity makes people more likely to choose a product. The easiest way to control price perception is through the just noticeable difference JND. Just Noticeable Difference — The minimum amount of change that triggers detection i.

In practice, however, that principle is very counterintuitive. Since businesses avoid price increases, they save that tactic as a last resort. Avoid waiting until the moment of desperation. With more frequent price increases, you also avoid reinforcing a concrete reference price. If your price stays the same for years, then people will become accustomed to your price at that specific level. Once you change your price, people will be more likely to notice. So they often avoid price increases by reducing the physical size of their products e.

By reducing physical size, food marketers lower their costs and increase their margin. If you downsize your product, reduce the size of all three dimensions — height, width, and length — by an equal amount. If not used properly, discounts can actually harm your business. In fact, some people suggest that you should never use discounts. That advice is pretty extreme. You can use discounts…you just need to use them properly.

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Where can you go wrong? Reducing the frequency and depth of discounts can help. Earlier, you learned that people can perceive different magnitudes for the same price, depending on the context. When you offer discounts, you want to maximize their perceived size. So how do you pick? Since the price is abnormal, people will be less likely to incorporate it into their internal reference price. With discounts, however, you want to maximize the perceived magnitude.

Those precise numbers will make your discount seem smaller. Indeed, Thomas and Morwitz found that people perceived the difference between 4. Soster, Gershoff, and Bearden found evidence for a bottom dollar effect. Bottom Dollar Effect — We feel the pain of paying in accordance with the depletion of our budget.

We feel more pain when we have fewer funds in our budget. For example, discounts or price-related promotions will be more effective toward the end of the month — when budgets are nearing exhaustion:. Likewise, you could offer free trials toward the beginning of the month — when monthly budgets are higher:. You will make the most by cutting middlemen out and selling directly, e. It is crucial to develop a marketing plan early, so that by the time your book is ready to publish, you have your ducks in a row and are ready to hit the ground running, not building an author platform from scratch.

Each of these elements is vital and if you omit one of these building blocks, the whole thing will quickly fall down. The No. Take your time and do this right. Whatever your genre, your work will be competing with professionally written and produced books and eBooks. Make sure your product looks and feels as good as the competition. Now that you are thinking like a publisher and have the core elements of the self-publishing process covered, I wish you luck. If you have any questions, please email me at leila iamselfpublishing. Register Sign in.

I think I might weigh a bit more if I did. I was born and raised in the Pittsburgh area. Love the photographs on your web site! Brought back wonderful memories and made me a little homesick for my family. She really knows her design stuff! Something as short and simple as number 1 goes a very long way. It shows that you listened. It shows that you care. And ultimately, that makes people feel comfortable and it makes them want to do business with you.

It ends up being a lot of names! But with social media, the chance to interact is there, and you can start to learn a few details about people. Like you said, Ricardo, if you pay attention it shows you care. Think forward to the day when your computing device laptop, phone, etc.

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Love the idea of a smell app! That would change everything. I wonder if it will really happen? If you have employees and train them to have a welcoming attitude, that works great as well. I love the simplicity of these marketing strategies, Pamela, as well as the magnitude of their effectiveness. This was also a nostalgic post for me. They made potato donuts to die for!! I want to thank Melanie Kissell for connecting me to you through this post on Twitter…and she really is passing it around cyberspace!

Thanks so much, Yvonne. Now, that is what I call the bait, hook and the fish concept. Love the way you explain to rope in a customer. Before I read your list I tried to guess what the answers might be. My first guess was friendly service from people we know and trust. I think this is how Social Media marketing is suppose to be utilized. Nobody comes to Social Media platforms to buy things. They come to connect and stay in touch with friends. I guess you could compare the smell of the bread to lifestyle marketing. We are all so enticed by interesting people — they are really as enticing as the smell of fresh baked bread.

What a great example and it makes me want some fresh buttery rolls. Get the free step-by-step roadmap for building your online business. Pamela Wilson.