Starbucks' Price Anchoring Strategy

Starbucks is finessing you with this simple trick 👇 ✅ Save this to reference for later They use a trick called price anchoring. Essentially this is strategic pricing design made to make the mid tier option feel like a deal. You can implement the same thing in your photo or video business. Just like Starbucks I almost always offer 3 packages. Before creating an estimate I’ll get a range for the clients budget and expected deliverables and work backwards from there. Let’s say for this example their budget is between $3-4k per month Package 1 a No frills deliverables at the middle of the clients budget (around $3500) Package 2 everything they need for just a little more. Than the top of the budget (in this case 4500). This gives room for negotiation. Package 3: pull out the stops for just a bit more say ($5500). Alternatively you could price this way outside the budget like 7k which makes the middle look even more appealing. The goal of the top package isn’t to sell it, although if you do it’s a bonus. The goal is to make the middle feel as appealing and as much of a bargain as possible. In order to make this work you need to offer more than just a deliverable. I like to offer strategy calls, implementation calls, and other bonuses to juice up the offer but obviously you have to take it on a case by case basis. 👉 Follow @nashhagen for more creative business tips! Be blessed and stay stoked 😎🤙