We’re still exploring cognitive biases.
Quirks of our brains that cause us to behave in certain ways.
This week’s is a personal favourite. Here’s a clue.
Yes I love Homer. He’s so wise LOL!
Today I’m sharing the framing effect.
In simple terms it is where we guide the comparison in our favour.
Politicians use it all the time. They seek to ‘frame’ their opponent a certain way and it works.
But in business the most powerful use is to help us put our price in context.
When actual and perceived value exceeds price it’s easier to get the sale.
One way to do this with framing. Let’s look at an example of someone selling a training course.
Let’s say the course is $997. If we just explain the benefits and tell them the price they might think it’s expensive.
However if we explain that if you engaged the business to do everything that’s in the course for you it would be $50,000 then it doesn’t seem so expensive.
We could also explain how it took 20 years to refine this course to only the stuff that really works.
Our proposition then becomes this. You could learn this yourself if you have 20 years to wait for results. Or you could pay us $50,000 to do it for you.
Or for only $997 you can learn everything we know and get started immediately.
Now I’d tweak that copy but you can see how by framing it the $997 no longer seems like a lot of money. That’s the power of it.
So if you ever experience price resistance you know you have a framing problem. And you now know what to do to fix it.