RATES Advertising Agency
  • Home
  • About Us
  • Services
  • Careers
  • Contact Us
  • Blog

What Does Price Say About First Impression?

6/8/2011

 
There was a very interesting article on pricing recently. The article shared some insights from a restaurant menu expert, called a “menu engineer.” There were some very cool techniques that I had never considered, such as
- Always have one ridiculously high-priced item on the menu because it makes everything else look inexpensive in comparison
Okay, I’ve ordered a $12 burger to avoid the $30 Strip Steak
- Remove the “$” before pricing to make it less intimidating
Hmmm, am I less intimidated by this: Prime Rib……$38. Or this: Prime Rib…….38
- Avoid listing items from least to most expensive, because that focuses the consumer on price. Instead, mix up the items, making it hard to find their price—thereby encouraging the customer to emotionally commit to something before finding out what it costs.
Pretty intriguing, wouldn’t you say?
Then the article talked about something called “arbitrary coherence,” which theorizes that pricing is, at least at first, arbitrary; we don’t all have some notion of “absolute price” when it comes to the utility we’ll get from every potential transaction. That’s the arbitrary side of the term. The theory says that once we anchor ourselves to the price of something, our expectations with respect to price going forward is relative to our first impression. That’s the coherence bit.
We believe the arbitrary coherence concept is very applicable to any business. We believe most consumers have no idea what your pricing is. So, if you can set a high first impression you can set their expectations
moving forward. This will allow you to be able to negotiate with the customer even if they already have a preconceived idea of what something should cost.

How many people know what a LOCAL ad in the Super Bowl costs? The answer would surprise you that it is no where near what the national ads cost and can be quite affordable considering how many people you will reach. What is the real difference between a Chevy and a Lexus? Both get you to where you need to be right? However, Lexus has put a lot of time and energy and marketing into what a consumer wants and they have used appropriate branding to be able to charge their price.

Someone will always be the highest, someone will always be the lowest and many will fall in the middle. Set your expectations and sell the sizzle!

    Archives

    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    April 2012
    March 2012
    February 2012
    January 2012
    September 2011
    August 2011
    June 2011
    April 2011
    October 2010
    September 2010
    April 2010
    February 2010
    January 2010
    October 2009
    September 2009

    RATES Agency

    We strive to provide quality service while maintaining productive growth for our clients.

    RSS Feed

  • Home
  • About Us
  • Services
  • Careers
  • Contact Us
  • Blog