Smart Pricing Strategies Backed by Psychology

Episode 18 transcript: Smart Pricing Strategies Backed by Psychology

Why pricing is more than a number

Hey there, and welcome to episode 18 of Your Fun and Profitable Online Business. I'm Wendy Muzzy, a money coach, business strategist, and your go-to guide for building a business that doesn't just look good, but actually feels good and makes money doing it. Today, we're diving into something that trips up a lot of smart entrepreneurs, pricing, specifically smart pricing strategies backed by psychology, the kind that helps your ideal client say yes with confidence and maybe a little excitement. Let's hope for a lot of bit excitement. All right, let's jump in. Let's be real for a second. Pricing can feel weird. There's self-doubt and market noise and the inner swirl of, am I charging too much? What are other people charging? Will anyone actually pay for this? And listen, I'm not here to tell you what your magic number is. Pricing is personal. It depends on your offer, your audience, your confidence, and your capacity. I still sometimes go to people about my pricing to see, hey, how does this land with you? We all need a little bit of feedback in that space, but we need to say a number that feels good and can be aligned to what we want to bring to the table. I am here to say this, your pricing is more than a number. It's a message. It tells your potential clients what to expect. It shapes how they feel about your value. And it communicates how serious this transformation or solution really is. So if you've ever just slapped a number on your offer and hoped for the best, underpriced because you felt nervous, or second-guessed your price the moment you sent the link, you're not alone. Let's talk about five simple pricing strategies using psychology. Strategy number one, charm pricing. Now we've all seen it, $27, $97,

Charm pricing and anchoring

$199. This isn't random, It's psychology. You see, our brains process numbers from left to right, and $199 feels closer to $100 than $200 for most people. Now, I've heard people say, nope, I definitely know the difference, and I commend you. But for most people, it feels closer to $100 than $200, even though it's only $1 less. And this is especially true whenever we switch the number of digits. So if we go from one digit to two digits, so $9 instead of $10, $9 feels less. If we go from $99 to $100, $99 feels less. Now you want to use this when your offer is $999 or less, or you want to encourage quick action. Here's an example. Instead of pricing your workbook template bundle as $50, try $47. See if it feels better without undercutting your value. All right, strategy number two, anchoring. Anchoring is when you set a mental benchmark that makes other prices feel more reasonable by comparison. Here you introduce your highest priced offer first, even if it's not your most popular. This shifts the entire context. You want to use this when you have more than one offer, or you want to position your mid-tier offer as a deal. And here's an example. You start your offer suite with a $997 VIP day, and then you introduce a $197 mini course. The course feels like a great deal next to the higher priced option, and it is, and it helps conceptualize the rest of your offers. So keep this in mind as you're going through and listing your offers. Strategy number three, the Goldilocks effect. When people have three choices, they often pick the middle one. It feels like the safe bet. It's not too basic or too extravagant. It's just right. Now you want to use this when you want to guide decision making, or you have a one-to-one

The Goldilocks effect

or service offers that vary in depth or access. Here's an example. You could create three tiers for a coaching offer. Tier one is Voxer only support for, let's say $147 a month. Tier two is Voxer and one coaching call for $297 a month. And this might be your most popular one. Tier three is Voxer with two coaching calls and a bonus for $597 a month. In this scenario, most people will land in the middle. Now, you might be one who would like, no, I know what that is. And once you know these tricks and tips, you may not, but most people generally would land in the middle there. Strategy number four, the price quality illusion. Now I want to share something interesting here. Too low of a price can actually hurt your sales. Why you may ask? Because in our mind, price equals quality. If something's too affordable, we wonder, is there a catch? Or is it going to be useful? Or are they any good? Now this applies when you're feeling tempted to start way low just to get sales. Or you've had people say your offer looks great, but it feels underpriced. Now, if you're struggling here, it's likely a money mindset issue. If you don't know, I'm a certified money coach and this is one area I specialize in. You can go to wendymuzzy.com/moneymindset to find out more. All right, here's an example where this comes up. Instead of pricing your four-week coaching program at $150 just to get clients, raise it to $375 and position the transformation more clearly. People are more likely to take it seriously and get better results. Strategy number five bundling and naming people love a deal i love a deal but you know what they love even more a beautifully packaged transformation instead of line iteming every component of your offer name

Price, quality, and perceived value

the full experience in a way that sounds exciting and results driven you can always refer to episode number 14 if you need some help with naming your offer and you can find any of my show notes at wendymuzzy.com slash the show number. So for that one, it's wendymuzzy.com/14. Now, you want to use this when you have bonuses or multiple delivery methods. Here's an example. Instead of a 30-minute call in a workbook, call it the Confidence Starter Kit, which includes a custom workbook and a 30-minute strategy call to help take action a day. This builds trust, makes the offer feel intentional, and increases perceived value without changing the content. All right, let's turn this insight into action. I want you to choose one offer and apply one pricing strategy this week. Let's review the five smart pricing psychology strategies we covered. Number one, charm pricing. Use $97 instead of a hundred to feel more accessible. Number two, anchoring. Start with your premium offer to create context. Number three, Goldilocks pricing. Guide people towards your middle tier or the just right option. Number four, price quality illusion. Don't undercharge and risk being underestimated. You are way more powerful and worth it. Number five, bundling and naming. Name the experience, not just the pieces. Look, pricing doesn't have to feel mysterious, arbitrary, or awkward. When you price with confidence and a little psychology, it becomes a tool that works for you. If you love this episode, please leave a quick review. It helps more than you know. And if you want some more pricing strategies, grab my low ticket offer, Pricing with Confidence. You can find it at wendymuzzy.com/everything. All right, see you next week and happy pricing!