How to Price Your Platypus 07/10/2018 1 How to Price Your Platypus: Getting The Best Price For Your

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Transcript of How to Price Your Platypus 07/10/2018 1 How to Price Your Platypus: Getting The Best Price For Your

  • 07/10/2018

    1

    How to Price Your Platypus: Getting The Best Price For Your

    Keynote, Seminar or Workshop

    David Abbott

    david@insight-bp.co.uk 07971 962235 @davidatinsight

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    Heuristics (rules of thumb)

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    But Business

    Customers Are

    Rational

    …aren’t they?

    Parole Decisions

    No Previous Offences

    Rehabilitation Program

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    65%

    % of Prisoners Granted Parole

    10%

    Shai Danzigera, Jonathan Levavb and Liora Avnaim-Pessoa: ‘Extraneous factors in judicial decisions’, Proceedings of the National Academy of

    Sciences of the United States of America

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    Price

    Relativity

    1

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    Proposal for Client

    Option 1 - £700 Turn up, speak, go away

    Option 2 - £1000 Turn up, speak, free workshop

    Option 3 - £1100 Turn up, speak, free workshop, free consultations, 5 free

    books (signed), promote on social media, etc

    £20£28£10 £30

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    11

    Price Anchors

    2

    0

    10

    20

    30

    40

    50

    60

    00-19 20-39 40-59 60-79 80-99

    Cordless Trackball

    Cordless Keyboard

    Design Book

    Neuhaus Chocolates

    1998 Cotes du Rhone

    1996 Hermitage

    Dan Ariely, George Loewenstein, Drazen Prelec; “Coherent Arbitrariness: Stable Demand Curves without Stable Preferences”, Quarterly Journal of

    Economics (2003)

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    6510

    £7 - £10 £40 - £60

    47 77 32

    87 59

    8

    29

    6mm

    PU Foam

    9mm

    PU Foam

    11mm

    PU Foam

    11mm

    Sponge

    9mm Crumb

    £2.99 £4.99 £5.99 £7.99 £9.99

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    9mm

    Crumb

    11mm

    Sponge

    11mm

    PU Foam

    9mm

    PU Foam

    6mm

    PU Foam

    £9.99 £7.99 £5.99 £4.99 £2.99

    Proposal for Client

    Option 1 - £1100 Turn up, speak, free workshop, free consultations, 5 free

    books (signed), promote on social media, etc

    Option 2 - £1000 Turn up, speak, free workshop

    Option 3 - £700 Turn up, speak, go away

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    Proposal for Client

    Credentials Last year spoke to 2000+ people/month

    Average value gained by audience is £3,534

    Mean Clapometer score is 1800

    Price - £1100 Turn up, speak, go away

    £10£30£40

    Platypus 80

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    3 Price vs

    Value

    Sales

    Low

    Normal

    High

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    Sales

    Low

    Normal

    High

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    $5 $10 $35 $45 $90

    Hilke Plassmann, John O’Doherty, Baba Shiv and Antonio Rangel: ‘Marketing actions can modulate neural representations of experienced

    pleasantness’, Stanford University, 2007

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    “No one ever got

    fired for buying“

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    Proposal for Client

    Option 1 - £2000 Turn up, speak, free workshop, free consultations, 5 free

    books (signed), promote on social media, etc

    Option 2 - £1000 Turn up, speak, free workshop

    Option 3 - £700 Turn up, speak, go away

    £50

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    Arbitrary

    Precision

    4

    Manoj Thomas, Daniel H. Simon, Vrinda Kadiyali: ‘Do Consumers Perceive Precise Prices to be Lower Than Round Prices? Evidence from Laboratory and

    Market Data’, Johnson School Research Paper Series #09-07, 2007

    Petri Hukkanen, Matti Keloharju: 'Initial Offer Precision and M&A Outcomes', Aalto University, Harvard Business School, CEPR, and IFN, November 2, 2015

    Malia F. Mason, Alice J. Lee, Elizabeth A. Wiley, Daniel R. Ames: 'Precise offers are potent anchors: Conciliatory counteroffers and attributions of knowledge in

    negotiations.' Journal of Experimental Social Psychology, 2013

    £325,000

    £325,425

    Fewer ‘0’s =

    less discount

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    Proposal for Client

    Option 1 - £2380 Turn up, speak, free workshop, free consultations, 5 free

    books (signed), promote on social media, etc

    Option 2 - £1170 Turn up, speak, free workshop

    Option 3 - £760 Turn up, speak, go away

    £78.32

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    1 Price Relativity

    2 The Power of

    3 Price vs Value

    0

    5 Price Abstraction

    6 Arbitrary Precision

    4 Price Anchors

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    8 Hyperbolic Discounting

    9 Charm Pricing

    7 Elective Pricing

    10 Two-Part Pricing

    11 Dynamic Pricing

    12 Price Presentation

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    Most Expensive

    Per Litre

    In the

    WORLD????

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    £100

    £100,000

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    £100,000,000

    £100,000,000,000

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    www.amazon.co.uk/How-Price-Your-Platypus-

    Understanding-ebook/dp/B06XK96VSW/

    www.david-abbott-speaker.co.uk/blog/

    @davidatinsight

    Newsletter – send me a request to:

    david@insight-bp.co.uk

    Thank You

    David Abbott

    Insight Best Practice

    david@insight-bp.co.uk 07971 962235 @davidatinsight

    mailto:david@insight-bp.co.uk