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It's all one big mind game.

But you're better than that.

Let me explain:

We're neck-deep into the Black Friday soon-to-be Cyber Monday madness, and your inbox must be flooded with offers that are "too good to miss" and are "a crazy bargain".

And while it's all well and good, and every company (including my own) believes that their offer is too good to miss out on, there are two types of businesses out there:

  • Ones who are aware of pricing psychology and choose to use it
  • And ones who are aware of pricing psychology, and choose not to use it, even at the cost of losing sales.

Can you tell which group I subscribe to? ;)

Pricing psychology refers to the tactics businesses use when showing their prices to consumers, and they're literally everywhere.

Think of the last time that you checked the price tag of two similar products in the supermarket. Or the last time you bought an online course.

(if you didn't buy any online courses in the last two years, consider yourself to be one heck of a unicorn and I'd love to speak with you, out of pure curiosity!).

And pricing psychology traps are easy to fall into, even if you're the conscientious consumer that you are -   

.99, $11, and 47€ do look better than 1.00, $10, and 50€.

When you're aware of how much you're saving, it feels really great.

And the whole "buy one - get one" thing, I mean, that's (usually) a no-brainer!

Now, I'm not telling you that there's a right way or a wrong way to do pricing, because ethics is a very big gray area, but we at least need to talk about the fact that pricing psychology exists - and in this case, how do we use it, if at all, in our businesses?

As much as I'd love to give you a definite answer to this, I can't. My ethical standpoint is that you need to do what's best for your business and customers.

And anyway, you won't change your holiday pricing now. Even I think that'd be silly to do.

So if anything else, this holiday season, I want you to pay attention to what you're buying and why.

Take a second before you complete your purchases and ask yourself - does the price of this product/service really reflect its value? Or was I charmed by a price that just seemed like a great deal? What's actually going on here?

And if you'd like to dive deeper into pricing psychology, here are a few good reads:

1. Charm pricing - why I don't recommend it - by George Kao

2. Why do losses hit harder - by Abhishek Shah, Psychology of Marketing

3. The art of pricing - by Bhumika Dutta for Analytics Steps

As one business owner to another, I want you to remember that the value you bring to your clients is immeasurable, whether you harness pricing psychology to your benefit or not.

It's up to you to use this information as you see fit.



P.S. Ever since I learned about charm pricing a while ago, I decided to ditch it altogether and only offer services in round numbers.

Am I losing some sales? Maybe.

Am I working with more aligned businesses and entrepreneurs who understand the value of my work to them, regardless of a round number or the 3€ or 1€ difference that they see on my quote? You bet your beautiful behind that I am!

P.P.S I would never tell you what to do in your own business, %FIRSTNAME%. My aim here is to make you think and realize that those tactics exist. You have the power and the choice to do whatever you want with this information - and by even thinking about your pricing options like that, I'd say that you're already at least 50% more ethical than most of the businesses out there.

P.P.P.S One very last thing before I go - my new email copy coaching group is kicking off on December 1st, and there are 10 spots available for this round.

Registration closes on November 27th, and the price is 450€ (see? told ya!)

Email Muscles is a 12-week program for business owners who want to write and send better emails to their growing lists every single week - and with the confidence of an experienced email marketer.

Interested in joining? See more details here, or go ahead and set up a quick call with me today to see if it's the right solution for your email marketing.

If you received this email from an awesome person and would like to get the ethical Friday newsletter directly to your own inbox -
Join here.

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