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!