Nine Nine Lab

❌ PEOPLE ARE NOT RATIONAL!
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📦 We like groups and categories.
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🍔 A burger is fattening and a salad is healthy.
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🤔 If you ask people to guess the number of calories, they’ll say 500 for a burger and 100 for a salad.
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🍔🥗 But ask them for a burger and salad combo?
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💥 They’ll guess 400!
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👉🏼 This is called the sub-additive effect.
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👉🏼 Because the burger and the salad exist in different groups in people’s minds (fattening and healthy), when bundled - people average out their guess across those two groups!
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👉🏼 Same happens in pricing.
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👇🏼 Tell me what you think below.
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🤑 PRICE POSITIONING!
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👀 Where you place something impacts how much attention it gets.
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🛍 A display in a shop window gets more attention than some racks in the back.
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🤨 But if the mannequins were facing inward, that would be weird.
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⏳ It would take you longer to process!
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💥 The same is true with pricing!!
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👉🏼 For individual prices, position them according to rules 1 and 2! Low to the left, high to the right. It’s what we expect because of our imaginary numbers line. We’ll process it quicker.
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👉🏼 BUT! For price lists, follow rule 3! High to low! Seeing a high price first anchors expectations and makes each price after it seem cheaper.
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👉🏼 AND! We are LOSS AVERSE, as we go down in pricing, we’re experiencing what we’re losing from each cheaper option. And that’s more powerful than what we’ll gain when prices are sorted low to high.
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👇🏼 Tell me what you think below.
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💥 Not all services are created equal.
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👀 The more your services move from doing to teaching to consulting, the more you can premium price them.
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👤 You don’t have to go through all the levels and can be on multiple ones at the same time.
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😩 But if you’re feeling stuck on level 1, you’ve got some options.
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👉🏼 Let’s look at a pricing example.
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1️⃣ Level 1: you hire me to price your products.
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2️⃣ Level 2: you hire me to teach you how to price your products.
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3️⃣ Level 3: you download my pricing course and template and price the products yourself.
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4️⃣ Level 4: you hire me to help you with pricing software implementation.
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5️⃣ Level 5: you hire me to design your full pricing strategy.
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👉🏼 What’s your favourite level?
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👇🏼 Tell me what you think below.
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💥 Tips for answering price challenges!
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👀 Best to get your practice in now.
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👉🏼 Keep negative emotional responses to a minimum.
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👉🏼 Use it as a learning opportunity.
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🤔 Has your price been challenged? How did you respond?
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👇🏼Tell me what you think below.
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😎 Everyone knows the classics like underpricing.

👉🏼 But did you know about these?
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1️⃣ Over rationalising your pricing when you get challenged. Instead try pausing, and come back confidently with “I appreciate it may seem pricy but most good things are”
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2️⃣ Including costs that are not relevant. Digital goods are created once and sold in multiples. The time you spend does not matter. It’s gone!
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3️⃣ Not raising prices regularly! The longer you wait the bigger the change you’ll have to make later.
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👉🏼 Have you been guilty of any of these?
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👇🏼Tell me what you think below.
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💥 Ah the ultimate question. Should you price hourly?
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👉🏼 After an initial consult, if you’re pricing hourly you’re capping your earnings.
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🙌🏼 Package pricing unlocks your earning potential.
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🤔 It also gives your clients certainty about the full investment upfront.
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🤔 AND it rewards your productivity.
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⏳ Now your brain is mulling with BUT arguments.
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😩 BUT my industry, my clients, my service.
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👉🏼 Yes, you’re special, and your clients are too. But if lawyers have managed to come up with alternate pricing, so can you.
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☝🏼 Time to reward your productivity. Do it now.
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👇🏼Tell me what you think below.
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💥 When you underprice, you’re doing a disservice to your future self.
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🎬 At the start, it feels necessary to get some clients through the door.
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🤔 So you offer up your services cheap.
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⏳ And eventually, you get booked up.
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😩 Now you’ve got no more need for clients, but a need for more money! You’re busy but not rich.
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👉🏼 That’s because you landed yourself in the underpricing risk zone.
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☝🏼 So instead, avoid underpricing EVER. Your future self will thank you!
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👇🏼Tell me what you think below.
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❌ NEVER give away discounts for free.
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✔️ Always have a reason.
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👀 Discounts are a polarising topic in pricing.
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🪝 There is the belief that if you use a discount once, you’re forever married to them, your customers will get hooked on them, and you’ll never sell at full price again.
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⬆️ I call BS.
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👉🏼 Mostly because discounts come in all forms and can be used sparingly to not train any behaviour.
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👉🏼 A free into consult is a discount. As is pre-sale pricing.
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☝🏼But, if you are using discounts, they should be rationalized.
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👇🏼Tell me what you think below.
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📱 The pricing mastery of Apple.
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👑 The kings of premium pricing.
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🪝 Apple does a great job at getting us hooked on their products and willing to spend the money.
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😎 Here are some of their clever pricing tricks:
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✔️ The use charm pricing because our brains read £999 as way lower than £1,000!
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✔️ They use anchors! No MacBook below £999 tells us that the cheapest one you can get is already pricy! But with the premium version at £2,399, £999 doesn’t seem so bad!
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✔️ And lastly, they’ve got 3 options, utilising the good-better-best principle. That way they cause the pause of “Oh but the middle option is only £300 more than the cheapest one” making us more likely to spend more!
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💭 Interested in part 2 of Apple’s tricks?
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👇🏼Tell me what you think below.
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💥 PAIN OF PAYING!
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😣 Every time we spend money we feel a pain of paying. We don’t like to part with our money and making a payment reduces the pleasure of making a purchase.
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🤔 But there are ways to reduce that pain!
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✔️ Shorter words take less time to process, so numbers with less syllables get encoded as smaller.
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✔️ Using words associated with small sizes primes our brains to think small. Low maintenance, small selection, few items left.
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✔️ Getting rid of the comma does the double job of making the numbers shorter in length, and triggering the syllable effect.
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✔️ And lastly, getting rid of that pesky currency symbol - but only where it makes sense! Widely used on restaurant wine menus, it actually makes us spend more!
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💭 Any others you’d add?
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👇🏼Tell me what you think below.
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👆🏼 Time to increase prices and want to know how to tell your current clients?
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👏🏼 Here are 5 tips to land the message successfully:
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1️⃣ Give advance notice. Aim for at least one payment cycle in advance.
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2️⃣ Pick the right time. Ever noticed how Netflix does it every January while everyone’s still on a New Years buzz?
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3️⃣ Provide an explanation. Focus on the quality of your work and how you’ll be able to maintain or increase it as a result of the price increase. DON’T OVERPROMISE!
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4️⃣ Don’t wait. Do price increases regularly. Smaller increases more frequently feel less painful than one large one all at once.
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5️⃣ Close with an opening. Don’t announce the change and run, even if your instinct tells you to. Leave the door open for customers to come with questions.
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☝🏼 And remember, price increases are a completely normal part of doing business. They are necessary!
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💭 Practice makes perfect. Is now the time for a price increase?
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👇🏼Tell me what you think below.
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💣 9 is old news! You should end your prices in 7!
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🧐 Or should you?
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0️⃣ In reality, there’s zero empirical research supporting the claim that prices ending in 7 increase sales or conversion!
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🤯 Shocking right?
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😱 Why do it then?
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👯‍♀️ Well, because of this myth, many internet marketers have adopted the pricing style.
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🗺 It’s everywhere, so customers are familiar with it.
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☝🏼 And there is a benefit in showing prices that customers are familiar with. It lowers the cognitive load.
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😉 So if you choose 7, know that it’s because of the crowd effect and not science.
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👇🏼Tell me what you think below.
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