Persuasive people understand that we're all so overwhelmed with choices that at times we need to forego analysis and take shortcuts to reach decisions.
One example is how people equate the value of a product or service with its price.
This true story proves our point:
The owner of a jewelry store near an Indian reservation in New Mexico offered well-made products and with very good materials. And her prices were quite inexpensive given the quality.
But she struggled to sell her products. The problem was that her customers – mostly tourists – had no ability to assess the value of her jewelry. And since it was fairly inexpensive, they assumed it was low quality.
Worried, the jeweler decided to cut her prices in half. She had to move her product to pay her rent! So she sent her store manager a message to reduce the prices. But the store manager misunderstood the e-mail, and instead, she doubled the prices!
Guess what happened next!
Yes, you're right – tourists started to buy a lot of jewelry. The initial prices were so inexpensive that they just thought the product was inferior. But when the prices were doubled, they now believed the jewelry was high quality. And so, they bought.
This is an example of a very basic principle of how to sell and persuade.
1. We're all overwhelmed with information. When we're unable to determine something's worth, we tend to rely on assumptions (mental shortcuts).
2. One of our barometers is price. If something in inexpensive, we sometimes assume it is inferior quality.
3. By raising the price of your product or service, you can create an aura of value and exclusivity.
4. This doesn't always work, of course. If prospective buyers can make a quick and accurate assessment of your product or service and your price it out of line, then this strategy can backfire.
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