Lesson Details:
April 30, 2020
Video Transcription: In this video, I want to introduce you to a very common tactic that many companies use
and it's meant for premium pricing this video is
brought to you by Appy Pie Academy for high-quality products so if you can have
a high-quality product and set a relatively fair price for it and then maybe
add a 10 to 20 per cent increase on top of that and actually display that
publicly as the price but that's going to allow you to do is to say we have a
discount 10 to 20 per cent here's the sale here's a discount for people who want
a sale but people who want to deal with people who want to bargain you
can give them that leeway and they'll be happy and not only that you can say
this sale and soon it's not always available even though you can always make it
available because it's priced into your product for specifically for the
discounting and guess what customers will be happy that they got the sale and
they will hurry to buy so they don't miss the end of the sale so this helps
with scarcity and with customer happiness the only thing I would recommend
against is don't do this for low-quality products because people are usually
going to be less happy about them anyway and they're going to be less happy
that your advertised price is unfairly high to the quality of the product and
then they're gonna leave bad reviews they're gonna get more returns you're just
gonna have a higher irritation rate of your customers which you really don't
want but for good products, this is a good strategy because it sounds often
doesn't even matter if they paid more because if they got value
then ultimately they'll be happy probably and at times you might even have
people who don't negotiate and don't get a discount they'll even pay the extra
10 to 20 per cent premium but the main reason to display that inflated price is
so that then by discounting you can create the illusion of a sale where really
you're actually gonna end up at a fair price so you're kind of getting ahead of
the negotiation that you would have otherwise had n companies do this all the
time udemy does this all the time and students and instructors don't particularly
like this but they do this all the time I'll show you and by the way, this is a little bit of like a tricky thing if you don't want to do it you don't have to
it's just an option that I'm presenting you but if this feels icky to you like
you don't want to feel like you're tricking the clients you don't
have to do this but it's certainly an option that's available but here is
something that you to me this and again students and instructors don't
particularly like this because it creates so much confusion but looks the actual
price is listed at $200 and then udemy says oh look at this amazing discount
94% off great right and then they say look at these two days left so people jump
on it because there are two days left but udemy has sales all the time so you can
always get some kind of a different discount so it might be $13 the next day or
$15 or $9.99 whatever so they doing this all the time Amazon does this a lot of
companies do this so it's very common and a proven sales tactic.
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