Pricing Transformational Services:
The 3 Huge Differences between $95, $97, and $100
Different prices mean different things. And there’s a bigger difference in numbers ending in 95, 97, or 100 than you might think.
Now here’s the thing… Make sure what you’re offering and the price you’re offering it for are *actually* good values. (Read my “5 Pricing Mistakes that Hurt Coaching Brand” article to learn more about this…) If they’re not a good value, don’t use any of these ideas. Use these suggestions only for good and transformation, okay? (No plotting world domination…)
Find out which pricing strategy fits your brand (and will attract your ideal clients) by considering these 3 things:
Presentation: Are people seeing the number, or hearing it?
First, consider what presents as a slender or physically smaller number. Digital marketers use this tactic all the time. If you’re putting a price on a sales page that people are seeing online, use slender numbers. For example, the seven in 97 is more slender than saying 5, 8, or 9, so it seems to the subconscious – the far back reptilian part of the brain – that it’s actually smaller. This is brain science. It’s not something that affects people consciously, but it does actually have an effect on your customers.
On the other hand, if you’re saying a price
(Is this stuff really true? Yep.)
Another thing you can do when you’re including your prices online is to take the original regular price, make it much bigger with a strike through it, and then make the price that you’re *actually* going to charge smaller, right next to it. This little technique helps reinforce to buyers that the offer you’re making is a really good value.
The second reason we like to price things at 95, 97, or 99, instead of 100, is a concept called precision. What that means is that it subconsciously makes sense to us that 97 means we’ve calculated the value of the item or service very closely.
Think about it. If you say to somebody, “Oh, it’s around 100,” then that means it could be 95, it could be 105. It’s somewhere around 100. We think of those round numbers as something that has been rounded off, so maybe the actual value is a little lower, a little higher, but we are good with a round number. If you say 97, there’s a subconscious belief that the value has been carefully calculated. There’s no rounding off here. 97 isn’t 96 and it isn’t 98. We calculated it much more precisely. Consider this carefully if precision is important to your brand.
Round numbers, like 100 or 500 or 1,000 or 5,000, create the concept of luxury. Tiffany’s does not price their jewelry at $9,999. Their jewelry is $10,000 or $5,000 or $25,000.
Luxury brands tend to go with round numbers because the perception is, “Hey, we don’t need to worry about a couple of dollars here and there. We’ve got plenty of money.” It’s a luxury brand positioning.
What It Means for You
So, what number’s on brand for you? Do you want the precision? Do you want to be seen as a good bargain? Because if you want to be seen as a good bargain, then you definitely want to price with 95, 97, or 99. If you want to be seen as a luxury brand, stay away from the precise numbers and use round numbers.
Now, in my brand, I’ve made the personal choice to change it up depending on where in my suite of products we’re talking. For example, lower ticket items, the $100-ish items, the $500-ish items are priced at $97 and $497. I sell largely online so I want that slender seven. Precision is also a huge part of my brand.
Once you get up to my $5,000, $10,000, $20,000 offerings, then I’m using round numbers because what I’m saying is, “Look, I don’t want people to fool around. I don’t
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