I don’t think anyone at Netflix expects people to actually pay £8.99 for a house full of people glued to their screens. But the £8.99 price makes the £7.49 price seem more credible. With 70m subscribers, it’s worth trying.
Some fascinating thoughts on pricing things, and how to talk about pricing (or not).
I’m currently reading Influence, which is a book about humans get manipulated. Money is a big component of it. Highly recommended by the way.
Anyway, I think that in general the mistake that is made most with high-end products and services is not charging enough, and talking too much about the price.
You should talk more about how much better the offering is and treat the price like a given. So like the article says:
Don’t talk about price.
And when you do have to, make it as clear and as simple as possible. Like the Netflix model.
Everyone still thinks they have one price, but they don’t. But since people think they do, they basically still do.
I think the higher you go in quality the less you should be talking about price and the more you should be talking about how much better they will be (as a person or as a company) as a result of the purchase.
The key for me is making that actually happen, and not having it be a lie.