Price Is Not The Only Consideration

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There’s a classic misconception that buyers always choose the lowest price. If you’re charging $4,000, and somebody else is charging $3,000, the prospect is going to choose the person that costs less. If price were the only consideration, everybody would buy a Honda Fit instead of a Mercedes because they provide the same service. They both get you from one place to another. In actuality, there are a couple of things that go into the decision to buy. 

Number One: The level of trust. If you present your services in such a way that the prospect can trust that you won’t screw it up, then paying $4,000 vs $2,000 doesn’t matter. If someone comes in at $2,000 and isn’t able to generate trust, then paying you $4,000 is a total deal, even though it’s twice as much.

Number Two: Much of the purchase decision revolves around personal fit, process fit, and the removal of friction. Marketers want agencies that work with them in the way that they work. They want the agency to provide them with the things that they need in order to have a handle on what the agency is doing. Most marketers, especially if you’re dealing with bigger companies, don’t care about the price. They care about ease and fit.

Pricing may be a bigger issue for smaller marketers. They don’t have as many constraints around their workflow, but if you can make it easier for them to work with you, then you’re providing efficiency and comfort that they’re willing to pay for. 

Number Three: Downside avoidance is the final piece of the buying decision. As human beings, we are all hardwired to have a scarcity mindset. Losing something you have is emotionally painful. The joy of getting something that you don’t have isn’t as strong. One of the things that you have to do in order to justify a higher price isn’t give the most upside. It’s actually about guaranteeing that there’s no downside. Clients, especially bigger ones, are willing to pay for zero downsides.

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