The Art of Persuasion (with Price Anchoring)
Listen on the go by downloading the audio of today’s video.
Join us on the journey to predictable growth. Each week we tackle a different level of your funnel, from traffic and email list growth to sales conversions and upsells. [thrive_2step id='19054']Sign up for our newsletter here[/thrive_2step] to get daily 10-minute #MattHacks videos.
- Price anchoring gives real monetary value to products or services, which serves as a successful persuasion tactic
- You can use these persuasion tactics in your landing pages, emails, and in-person negotiations
Hey, guys. Matt Ackerson here, the founder of Growbo.com, as you may already know. I am back in beautiful Long Island, New York, from a year of traveling in Medellin, Colombia and throughout Latin America. And I'm currently here at my local gym. I've been doing some work here. They have a little cafe upstairs. I alternate between working and actually working out--it's a pretty good routine.
So anyway, I'm deciding what my next move is. Do I want to stay put? I'm currently visiting family. Or, do I want to keep traveling? A big part of why I had the opportunity to even work and travel is thanks in large part to the sales funnel that we have set up, that we're iterating on and getting better at. Every single month, consistent growth. I encourage you to go back and look at our growth reports.
But what makes a sales funnel run even better is price anchoring. And that's what I want to talk to you about today in this Matt Hack video.
Price anchoring explained
So, what is price anchoring? Price anchoring is a specific copywriting sales or persuasion tactic that you use to better convey the value of your product or service and/or make it appear more affordable, so that the price point is, therefore, more persuasive. This is something that you can include in your landing pages, by the way. You can include it in your emails. You can include it in your ads, or your retargeting ads. You can use it in everyday life too, or negotiating.
For example, I'm currently negotiating a joint venture deal right now with a big partner that would be potentially very lucrative to Growbo if it actually goes through. And what I did as part of this negotiation was I used price anchoring. I was the first person in the negotiation to tell a story and throw out the revenue share price points the way that we would divide it up if we actually go through with this partnership.
For that reason, the conversation was anchored to that point. If you read books on negotiation, that's part of why they say the person who speaks first in terms of putting out a number usually has more influence on the starting point for the negotiation. So, that's why I did that. Let's bring it down to something that perhaps you can relate to a little bit better.
Examples
I spoke briefly through the chat support with the founder. I was asking questions about it and I said, "Okay, if I'm A/B testing my title tags and my meta tags, what sort of results can I expect to see, and over what period of time?" And he was saying, "About 10% increase per month," which is pretty good.
That's more than doubling your traffic over the course of a year. And their introductory price point is $49. So, how would you price anchor a product like this?
You could say our traffic, for instance, is at 35,000 visits per month right now. We just set a new record and have been growing consistently every month. I encourage you guys to go back and check out our growth reports if you're interested. But what would the value of doubling our traffic be if I know approximately how much it is to pay our editor, for instance, to go through and edit our content, make sure that it hits on certain points we need before we put it out?
In terms of a monthly cost, compared to $49 per month, it would be at least hundreds of dollars per month. If they were writing the copy for this, the right way to do it would be on their pricing page. They would say somewhere how much you would be spending in terms of content marketing to actually achieve the same results, which would be an increase of 10% per month. Or they could say they’re doubling your traffic over the course of a year. So, that would be a pretty good comparison.
Let me give you another comparison in terms of an example with services. We used to have this client back when we were an agency, and they were called Excel Help. Excel Help sells professional services that help to automate processes for large companies, eliminate paperwork, and increase efficiency.
If they were trying to sell their service to a client that was going to eliminate paperwork and save a lot of time, and this was often the case when we were writing the copy for them, this is what we said in the copy: How much time can your business save if you free up this amount of time? It’s potentially paying $10,000 to save $100,000, which means you can hire a whole new person. Or your business can be that much more profitable as a result every single year. And you've only paid this $10,000 project cost to us, one time.
Next steps
So, that is price anchoring in a nutshell. And you should include it on your sales pages to better convey your value and make your price point seem more appealing and more affordable.
Leave a comment and let me know, how are you going to use price anchoring? And what are some creative ideas that you have for how to incorporate it into your sales funnel? I look forward to hearing that.
Also, if you have a question that you'd like me to consider answering in a future Matt Hack video like this, leave a comment and let me know. Or hit reply on the email where this video came into your inbox.
Until next time, my name Matt Ack. I do not have my Matt hat on today, but I'm still delivering you your daily dose of Matt Hacks. Keep hustling, stay focused, and I will talk to you soon.
And if you like this video, subscribe and share it. Much appreciated.
Want more sales? Download my [thrive_2step id='18964']11-Point Perfect Sales Funnel Checklist[/thrive_2step] or invest in our
