The Psychology Of Pricing: Part 4 – RD267

<p>This is week four of my psychology of pricing series. Where I share research-proven strategies to influence people to part with their hard-earned money, some of these pricing tactics work great with your design business, and many of them are perfect for helping your clients get more sales.</p> <p class="p1">If you haven’t listened to <a href= "https://resourcefuldesigner.com/episode264">part 1,</a> <a href= "https://resourcefuldesigner.com/episode265">part 2</a> or <a href= "https://resourcefuldesigner.com/episode266">part 3</a> of this series, I suggest you do so before continuing with this one. Let’s continue with the series.</p> <p class="p1">As previously mentioned, I took the tactics I’m sharing here from an article by Nick Kolenda on his website <a href="https://www.nickkolenda.com/psychological-pricing-strategies" target="_blank" rel="noopener">nickkolenda.com</a> on the psychology of pricing. Nick has links to many of the studies I mention in these episodes.</p> <p class="p1">Let’s get on with the list.</p> <h2 class="p1">Tactic 29: Create a Payment Medium.</h2> <p class="p1">If you’ll recall the last episode, I talked about the Pain of Paying. That feeling we get when we have to part with our hard-earned money. Tactic 29 offers a great way to reduce that pain by creating a payment medium between the money spent and the purchased product.</p> <p class="p1">What is a payment medium? Casino chips are a great example. When gambling at a casino, it's much easier to place a $10 or $20 chip on the table than it would be if you had to put a ten or twenty dollar bill down. Casino chips act as a buffer between your wallet and the act of betting, which reduces the Pain of Paying.</p> <p class="p1">Another way this works, and possibly a way for you to incorporate this into your design business, is with advanced payments.</p> <p class="p1">If you charge clients by the hour, Instead of offering a monthly retainer agreement, you may instead offer a discount if a client pays for a pool of hours upfront, to be used at