Charging premium prices

Charging premium prices

Lesson Details:
April 30, 2020

Video Transcription: In this video, I want to introduce you to a very common tactic that many companies use and it's meant for premium pricing this video is brought to you by Appy Pie Academy for high-quality products so if you can have a high-quality product and set a relatively fair price for it and then maybe add a 10 to 20 per cent increase on top of that and actually display that publicly as the price but that's going to allow you to do is to say we have a discount 10 to 20 per cent here's the sale here's a discount for people who want a sale but people who want to deal with people who want to bargain you can give them that leeway and they'll be happy and not only that you can say this sale and soon it's not always available even though you can always make it available because it's priced into your product for specifically for the discounting and guess what customers will be happy that they got the sale and they will hurry to buy so they don't miss the end of the sale so this helps with scarcity and with customer happiness the only thing I would recommend against is don't do this for low-quality products because people are usually going to be less happy about them anyway and they're going to be less happy that your advertised price is unfairly high to the quality of the product and then they're gonna leave bad reviews they're gonna get more returns you're just gonna have a higher irritation rate of your customers which you really don't want but for good products, this is a good strategy because it sounds often doesn't even matter if they paid more because if they got value then ultimately they'll be happy probably and at times you might even have people who don't negotiate and don't get a discount they'll even pay the extra 10 to 20 per cent premium but the main reason to display that inflated price is so that then by discounting you can create the illusion of a sale where really you're actually gonna end up at a fair price so you're kind of getting ahead of the negotiation that you would have otherwise had n companies do this all the time udemy does this all the time and students and instructors don't particularly like this but they do this all the time I'll show you and by the way, this is a little bit of like a tricky thing if you don't want to do it you don't have to it's just an option that I'm presenting you but if this feels icky to you like you don't want to feel like you're tricking the clients you don't have to do this but it's certainly an option that's available but here is something that you to me this and again students and instructors don't particularly like this because it creates so much confusion but looks the actual price is listed at $200 and then udemy says oh look at this amazing discount 94% off great right and then they say look at these two days left so people jump on it because there are two days left but udemy has sales all the time so you can always get some kind of a different discount so it might be $13 the next day or $15 or $9.99 whatever so they doing this all the time Amazon does this a lot of companies do this so it's very common and a proven sales tactic.

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