What is Decoy Pricing and how can your Small Business use it?

We have done a few episodes recently about how to manage cost increases and how to raise your prices. Dave recently came across the concept of Decoy Pricing that is worth looking at.
What is Decoy Pricing?
Decoy pricing is a strategy that aims to guide a potential customer towards a specific product or service by presenting an inferior choice. Listen in to learn more!

00:00:00 Small Business Show #371 for Wednesday, March 16, 2022
00:01:00 Ben Thompson’s Stratechery Newsletter about Shopify
00:02:41 Traveler’s Tips!
00:06:53 Expensive stuff!
Sponsors

00:08:08 SPONSOR: Novo : Get Your Free business banking account in just 10 minutes at BankNovo.com/SBS .
00:09:49 SPONSOR: Shopify – For anyone to sell anywhere, Shopify is giving you a fourteen-day trial and full access to Shopify’s entire suite of features. Visit Shopify.com/sbs to get yours!


00:11:30 Decoy Pricing

The Popcorn Example. Large is the most profitable

Small – $3.50
Medium – $6.50
Large – $7.50


Service Providers: Use Bundling and Features
The Economist example

Digital Edition: $59
Print Edition: $125
Print + Digital Edition: $125


The Amazon Example
Search BusinessShow.co for “Story”
Tobi, the Snowboarder who started Shopify


00:30:35 Anchoring

“F*** the cup, pour it in my hand for a dime!”


00:35:45 SBS 371 Outtro

Next week: Delegating



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