Wouldn’t it be great to have a magic wand that could make buyers want to pay more? I’d love to have customers want to throw more cash my way … offers to buy the company come in higher.
Well, there’s a psychological trick that can help you do that, but please use it for good, not evil.
It’s called ANCHORING. How do you use it?
[This is #2 in my weekly series Monday Mindhacks: use psychology to create demand from customers, investors and acquirors]
When people don’t have a frame of reference of what price should be, something really interesting happens.
They use any number that’s introduced, and judge other numbers relative to the first one.
One form of this you see is fake “sales” where prices are artificially discounted … BUT the fascinating thing is…
It even works if the number is IRRELEVANT.
SO before your price discussion, you can start discussing bigger numbers – that aren’t a price – and it can have a subtle effect. You could talk about the height of Mt. Everest, and it will influence how they perceive every number that they hear after that.
Cool (and evil), eh?
So … what irrelevant number will you use for your magic wand?