Understand Your Buyer > How To Convert > The Price Freeze Effect
What is it?
Price freezing is all about giving buyers a “great deal” because they are paying at current prices rather than being subject to an impending price increase. It can be used to get buyers to take action and secure a price, rather than raising prices and discounting them back.
Why does it work?
It works because it appeals to FOMO and loss aversion. If you’re hoping to buy something, but have the option to freeze the price, then it’s a no brainer. That’s why price freezing can be a useful tool to get potential buyers off the fence.
How can you use it?
You can use this in two distinct ways with your buyers:
1 – Before a Price increase. If you are expecting or planning a price increase, then offering to hold or freeze prices can move potential buyers to buy and is a talking point.
2 – Promoting the same price. If you “should” be raising your prices but aren’t, then you can promote your current price (without the need to discount or do anything else) and use this to attract potential buyers.
12 alternative ways to discount your offering:
- First purchase– Discount the first purchase a buyer makes with you.
- Follow up offer – Follow up those who didn’t buy with an incentive.
- Cashback – Don’t discount, but provide cash back to those who pay full price.
- Themed Sale – Create an event or reason to hold a sale.
- Price Match – Offer to match the genuine price of a competitor.
- Buy more – Incentivise buyers to spend more with ascending discounts.
- Free gift- Offer a free gift with purchase.
- Early bird – Offer a discount for those who buy/pay in advance.
- Flash Sale – Hold a flash sale
- Budget version – Create a naturally cheaper version of your offering to appeal to lower spending buyers.
- Case Study Offer – Having a lower price for the first buyers, in exchange for reviews and feedback.
- Freeze the price – Allow buyers to avoid a price increase if they lock in.
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