Make customers think your prices are a steal (without discounts)
If an item is truly out of your target’s price range, there’s not much to be done. (You can’t sell a $100 toaster to a person with only 20 bucks in their pocket.) But there are tons of clients out there who can (and will!) pay what you ask!
All we need to do is position your items in a way that easily overcomes the “too-much” sensor in the brains of people who do have the cash to buy your products.
One way to sell high-dollar items is to make them look like a steal. The easiest way to do this is to make your product look like a bargain by putting a more expensive option right next to it.
This is marketing 101 stuff. And it’s actually a documented phenomenon called the contrast effect. There’s a famous study about it that was published in the Journal of Marketing Research. It goes like this:
Nobody was buying Williams-Sonoma’s $275 bread maker … until they put a $429 one right next to it. Basically, the same product, just WAY more expensive.
Guess what happened? Sales on the "cheaper" $275 bread maker doubled!
Williams-Sonoma sells twice as many breadmakers without discounting their product or adding a cheaper option! All they did was introduce a more expensive item to make their regular-priced breadmaker look like a steal. And if anyone bought the super-expensive model, then hey. That’s another 400 clams in their pocket. There’s basically no downside to this strategy.
(Image Source: Williams Sonoma)
So how might this apply to your portrait or album sales?
If you’re struggling to sell a $1000 album, try introducing a more expensive "luxury" option alongside it. Don’t worry if nobody buys the ultra-luxe album, that’s not why it's there. You’re simply using the expensive album to make the original price tag more palatable.
Another strategy is something called price anchoring. This is a tactic that I’m sure you’ve experienced firsthand…
A fundraiser calls and asks for a huge donation. Maybe $500. You obviously decline (which, honestly, they’re expecting you to). But then they follow up with a more "reasonable" amount… just $50. That’s way better, right? Turns out, if you let donors decide how much to give, you see a trickle of $5 and $10 donations. But by leading with a high number, consumers consider $50 a bargain!
You can try this tactic by reordering your store to show more expensive items first. After a $2000 album, $1000 looks like a steal. Have all your same products, just sort them from top dollar to bottom.
Notice that none of this involved cutting your prices or discounting products. You’re simply creating a perception of value by arranging your products in a more appealing way.