Mental Money: Why People Pay $1/Day vs $30 Upfront for a Month's Purchase with Pedro Piccoli Soares

<p><strong>Pedro Piccoli Soares</strong> is currently Senior Executive Manager of AI Pricing at <a href= "http://www.sixt.com/">SIXT</a>, a travel arrangement / car rental company that’s known to be a provider of high-quality mobility services. He mentors startups, and has an Engineering degree. He also has a purple belt in Brazilian jiu-jitsu.</p> <p>In this episode, Pedro shares his knowledge when it comes to behavioral economics as he and Mark talk about how it works in relation to mental accounting and pricing.</p> <p> </p> <p><strong>Why you have to check out today’s podcast:</strong></p> <ul> <li>Discover why it’s important for companies to understand why they’re doing pricing and why they’re having a price change</li> <li>Understand why you should still be relative to your competitors’ price change even when they’ve already made the mistake of decreasing their prices</li> <li>Learn more about behavioral economics, its tactics, and its relationship with mental accounting and pricing</li> </ul> <p> </p> <p align="center"><strong>“So, we've mentioned several different effects of behavioral economics and several different examples of how they can be applied on real business. If you think about it, they were quite simple, right? It's really easy to test these kinds of things, and they can generate some really nice benefits to your company, for sure.”</strong></p> <p align="center"><em>– Pedro Piccoli Soares</em></p> <p style="text-align: left;" align="center"> </p> <p><strong>Topics Covered:</strong></p> <p>01:40 – The internship that led to Pedro’s shift from being an Engineer to doing pricing</p> <p>03:09 – What Pedro loves about pricing that made him stay in it</p> <p>05:34 – Why it’s important for companies to understand why they’re doing pricing and why they’re having a price change</p> <p>07:38 – Being relative to competitors’ price change even when they made the wrong decision</p> <p>10:20 – Talking about behavioral economics; what Mark doesn’t like about it</p> <p>12:33 – Behavioral economics’ tricks: P