Pricing Halos. More, more, more.
Kinda feel like Billy Idol all of a sudden.
Anyway. Can’t stop, won’t stop.
There’s more to pricing halos than meets the eye. Much more, more, more.
How, you ask? By comparing not only your products to each other with anchoring but comparing a product to itself with value-pricing.
Have you heard of a little thing called “suggested retail price”. Or as they refer to it in the auto industry…MSRP aka Manufacturers’ Suggested Retail Price.
I know, you’re sitting there saying…so what about MSRP? What does that have to do with anything?
Well, since you asked. Everything. It has everything to do with pricing halos!
MSRP, or value-pricing, creates an anchor AND a halo.
Value Pricing, The Anchor And The Halo
When a seller mentions… well, when you mention, that a product or service is “valued at” $XXX amount of dollars (or pounds or whatever) and the sales price is (you fill in the blank but less than the valued at price).
What you have just done is you’ve created not only an anchor with the “valued at” price but you’ve created a halo around the sales price which assumably is lower and is a great deal… and a great value… and angelic (or halo’d) by comparison.
See what you just did there… you sly fox! You created another pricing halo.
Halo Part Deux
So what say you? Do you anchor and halo your products and services? Not sure it works? Give it a shot… what do you really have to lose?
Have questions or comments? Let me hear it in the comments below.
Want to learn more about pricing and packaging your products and services for profit? Join me in The Blueprint: Your Guide To Profitable Pricing & Packaging.