Practical Sales Training™ > How To Lose The Sale > The Low Price Fallacy
What is it?
When you want to attract buyers, it can be easy to think that a lower price = a more attractive price, but this is seldom the case. A low price can actually DETER buyers.
Why does it work?
As buyers, we equate price with quality, so a lower price is often an indication of lower quality.
For me, price is confidence in numbers. The lower the price, the lower the quality, but also the lower the confidence the seller has in their offering.
If you want to drive sales quickly, then SPEAKING TO MORE PEOPLE is far more effective than changing your pricing. If you don’t have many enquiries, a lower price won’t really change that, but it will dent how buyers view your brand and set a low expectation for the future.
How can you use it?
If you want to damage your chance of making the sale or making profit, then knee-jerk discounting as a short term pricing strategy is the one for you!
For added impact, you can dabble in some fake discounting and unrealistic discounts to really make your buyers suspicious of just how much your offering is truly worth…
Hypothetical Example:
A freelance photographer wants to book more weddings, so she decides to slash her package price from £1,500 to £600, thinking this will attract more couples.
Instead of generating more interest, her enquiries drop. Why?
Couples start to wonder:
“Why is she so cheap? Are her photos low quality? Will she even show up on the day?”
Her lower price, rather than being appealing, undermines confidence in her service. When she raises her price back to £1,500 (and explains the value she delivers), bookings actually increase because the price now matches the perception of quality.
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