Let Customers Be Willing To Be Marketing: A Pretext Of Price

The price of false and true is true, true and false.

Expensive free steak

How attractive a free 72 ounce steak is, actually, it's tempting you to dig your own pocket.

The biggest farce in the history of the United States is staged in Amarillo, Texas every day.

Just below the highway 40, there was a huge billboard saying: 72 ounces of free (1 ounces of 31.1035 grams) steak.

This is the signature dish of the "big Texas steak Ranch" restaurant, which includes salad, shrimps, baked potatoes, meat rolls, butter and a super beef.

The restaurant's request is that you have to eat everything in an hour.

Otherwise, you have to pay 72 dollars for the bill.

In this era of good litigation, there will certainly be some detailed provisions in such a paction.

For example,

Those who order 72 ounces of big steak are actually people who perform routine performances in restaurants: they must sit on special stage and eat in front of everyone, and they must not leave the table during the meal.

Another reminder is that if someone eats vomit, even if he wants to continue eating, he will not be eligible.

Since 1960 (when the price was $9.95), about 60 thousand gourmet customers have taken the challenge.

The restaurant reported that 8500 people had eaten it all, and the overall success rate was 14%.

There are not many women who dare to try, but 50% of the women who are on stage are successful.

A person who orders 72 ounces of beef steak dinner probably thinks that this is a bargain in any case, and only 1 dollars per ounce of beef.

Moreover, unlike the "how much to eat," promotions, customers can pack the rest of the food home.

On the surface, you seem to have nothing to lose, but think about it: you had a dinner of 72 dollars in Amarillo!

The "free" 72 oz. steak meal is a common product of folk wisdom and professional pricing.

In 1960, Bob Lee, the boss of the big steak ranch restaurant, came up with this idea alone, but there was no meal consultant at all.

His sales promotion includes several principles that the academics and marketing professionals believe in.

The most important point is that the 72 ounce steak is an anchor point.

When you come to the big Texas restaurant, you will hear people repeatedly say, "eat 72 ounces of Steak".

Although most customers do not order this dish, it has ingeniously increased their appetite for food intake and increased their willingness to pay.

In this regard, an anchoring experiment is worth mentioning.

This experiment asked a group of subjects two questions:

1. does the average American eat more meat or less than 50 pounds a year?

2. how many pounds of meat do ordinary Americans eat every year?

The median answer is 100 pounds.

Another group of subjects was asked: does the average American eat more meat or less than 1000 pounds a year? The result is that the median estimate of the group is 500 pounds.

The promotion of big steak ranch restaurant is actually a simple example of non-linear pricing.

The so-called "nonlinear" pricing means that the price (or the price of unit weight) is not a straight line, but changes with consumption.

The 72 ounce steak costs 72 dollars, but if you eat everything, the price will drop to zero.

This kind of pricing method has produced a magic spell.

It is the most commonly used method of price consultants, from mobile phone bills to air tickets, everything can be seen its figure.

Hungry customers in the big steak ranch don't know whether they are going to pay 72 dollars or not.

This uncertainty has greatly reduced the authenticity of $72.

There is another way of judging such pactions: according to the price per ounce.

A diner who orders 72 ounces of steak, if he can only eat 1 ounces, has to pay an outrageous price of $72 an ounce; if anyone can eat 32 ounces of meat, he needs only $2.25 an ounce, and almost all the people who eat the whole steak are only a little more than a dollar a ounce.

This is quite reasonable. The customer's head is all about a cost-effective paction, and in fact, the cost-effective price needs him to burst his stomach.

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Beer in the hotel is naturally expensive.

Some seemingly superfluous luxury facilities will raise people's psychological expectations of commodity prices.

When it comes to the most cunning application of arbitrary consistency, it is known that the discount card is also known as "loyalty card".

Consumers who use this card think of themselves as miser.

When they think of missing a cheap 5 cents to buy a towel, they are crazy.

So, as soon as they got to the cashier, they fumbled for the score card.

These people can drive through the entire city in order to save 5 yuan.

The data of the scorecard can tell the market what brands and items the most sensitive customers are buying regularly.

According to Jim Jim of Willard Bishop, the chain stores usually arrange 500 kinds of products that are most frequently sold and give them special treatment.

Supermarkets know that Coca-Cola, beef or Mac coffee prices rise, customers can notice.

Therefore, they always try to find the most uneasy commodity to raise their prices.

Few people will agree with parsley or other customers who buy less frequently, such as sweet sauce, pomegranate, cheese, fresh orange juice and so on.

"By these things, we have the opportunity to make some profits."

He explained.

This is because customers can not remember how much money they paid when they bought it last time, or the exact cost of the cost of these items.

On the way to determine what can mobilize consumers' willingness to pay, the number of "stones" that supermarket consultants haven't moved yet are few.

A recent survey is intriguing: shoppers who go shopping in a counter clockwise way are more forthright, and on average spend two dollars more than clockwise shoppers.

Envirosell CEO Paco Ande Hill mentioned a popular speculation: North Americans regard shopping cars as "cars" and rely on the right side of the road.

"If you want me to notice you," Underhill said, "I'd better go to my right."

According to this theory, if the shelf or wall is on the right side, the right-handed people (most of them) are more likely to impulse shopping.

Sorensen's research results have been widely adopted. Supermarkets put the main entrance on the right side of the store and encourage consumers to shop in counterclockwise direction.

Taylor's most famous thought experiment is related to grocery stores: in the afternoon of hot days, you lie on the beach, eager to come to a bottle of iced beer.

A friend volunteered that he would go to a small grocery store nearby to buy beer.

He reminds you that beer there may be expensive, so he asks you how much you are willing to pay.

Only when the price in the shop does not exceed your limit, will he buy it; if he exceeds it, he will come back empty handed.

In early 1980s, Taylor presented the puzzle to executives, who kept the average price of $1.50.

He also told the same story to another group of listeners, instead of selling beer to the bar under the luxury resort hotel. The average price of the audience was 2.65 dollars.

The two versions of the story clearly point out that friends bought your favorite beer brand.

No matter where to buy it, it is the same product.

The atmosphere of the hotel has nothing to do with it because beer is bought on the beach.

Executives, however, are willing to make an average price of $two for beer in luxury restaurants, but they do not want to sell the same beer at a small grocery store.

The price of the bar attached to the hotel is two dollars, which is considered a fair price.

Taylor suggested that the small grocery store "invest in seemingly luxurious luxury facilities or add a bar", which he believes will increase people's psychological expectation of the proper price of beer and bring more sales.

Another suggestion given by Taylor to the small grocery store is that the sale of super large beer is not the usual 12 ounces but 16 ounces.

Because consumers remember how much they can sell for a 12 ounce beer, but I'm afraid I don't know how much they sell for 16 ounces of beer (they can count, but most people don't do that).

Besides, large capacity beer can bring extra profits than small cans.

Taylor's two ideas can be seen in today's supermarket industry.

Supermarkets like Whole Foods Markets make full use of most of the "surplus luxury facilities".

In this way, they can get high prices that other customers can not accept.

Each branch of the total food market has an attractive feature production department.

"How small are these potatoes?" asked the placard on the side of the Russian finger potato displayed at the Manhattan Time Warner Center branch.

Obviously, it's cute and cute than your little finger. Do you mean to compare the price?

For example, the supermarkets and Sam member supermarket stores sell gallons of blue cheese salad and 32 rolls of toilet paper sold in gallons.

You think it's a good deal to buy in bulk - sometimes it is, but at other times, the deal is not as expensive as you think.

Many consumers don't know the cost of 6 pounds of pineapple.

The "organic" and "green" labels make the high and low-grade supermarkets make a big profit.

No matter what these terms mean, they don't have the meaning: high prices no longer seem to be slaughters.

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Pick up "cheap" in Prada

What is not sold can affect what is being sold.

Prada's market managers often wear "anchor points" as a psychological term.

In the luxury industry, it refers to a shocking price, showing that its main purpose is to manipulate consumers.

The anchor itself is for sale, but if no one buys it, it doesn't matter. It's there for comparison.

Everything else seems to be affordable.

"This method can be traced back to seventeenth Century," Ande Hill recently said. "You sell one thing to the king, but everyone in the court must buy another slightly poorer accessory.

There is a $500 leather bag in the window. Is it too much to choose a new T-shirt? "

Even at the best time of the economy, luxury stores are nothing more than face works. They are used by ambitious materialist to believe that the world is richer and more wasteful than it is.

Hill, a marketing consultant at sensory logic company, says successful stores use expensive items to create "mixed feelings of anger and happiness".

The middle class consumers are angry because they can't afford to shop and wear celebrities, but they are subconsciously happy to buy something else.

One of the important points of behavioral pricing theory is that what is not sold can affect what is being sold.

Marketing expert Tversky likes to tell the following story: in the Williams solomat kitchen chain, famous for its high quality and high price, there is a magic toaster that sells for $279.

They later added a slightly larger model, priced at $429.

Guess what happened afterwards?

The $429 model is a mess.

You're not a boarding school, what about a bigger bread machine? But the sales of almost $279 have almost doubled.

Since then, the contrast effect of retailers on prices has gradually become clear.

In 1992, the two principles of manipulative retailing were pointed out by T and Simonsen.

The first principle: avoid extremes.

They surveyed, including Minolta camera, Gao Shi pen, microwave oven, tire, computer and toilet paper, showed that when consumers were uncertain, they would avoid buying the most expensive or cheapest, the best quality or the worst, the largest or smallest items.

Most people tend to take the golden mean.

So, if you want to sell 800 dollars of shoes, the way is to put a pair of shoes of 1200 dollars next to it.

The second principle: balance the contrast.

Walking into a fur shop, there are ten handbags in store. According to anyone's standards, these goods are not the best quality products.

One is more practical, one is more fashionable, the other is more interesting, and another is forty percent off.

Consumers who hate loss are uncomfortable with such complex and diverse choices. She is worried that she will not choose B.

The principle of trade-off is that if a substance with a significantly inferior substance is better, consumers will tend to buy a nail, even if there are many other options, even if there is no way to judge whether a nail is the best among all options.

The fact that only one is better than B is a selling point, which carries a greater weight than rationality.

Obviously, shoppers want to choose a reasonable thing for themselves, to their friends, to check their credit card bills carefully, to ease their anxieties.

She can tell herself that buying a nail is because it is much better than B.

Trade offs are especially important in luxury trade, and all brands have flagship stores that sell only their own products.

In addition, retailers with strong brands have great flexibility in price.

Consultants at Simon Kutcher found that they always blame customers for setting prices too low.

"The price of luxury goods is not directly related to any cost," a market report of the firm declared, "the art of luxury pricing is to quantify the value of products to consumers, regardless of costs, competitors or market prices."

The reality of the fashion industry fully matches the two principles of Simonsen and trvsky.

True fashion is always expensive, uncomfortable, surprising and out of line.

Only a few of them can afford it with the finely chosen and flawless wallets and enough wallets.

Others are satisfied by buying something more comfortable and more reasonable.

Several things that are too remote to handle most consumers can be manipulated.

Prada is most admired for the creation of the environment.

It asked the famous architect Koolhaas to design his own store in Suhe District, New York, which costs 1700 dollars per square foot, and the rent is 1700 dollars.

It will never use the space on the first floor to place things that can hardly be sold unless there is something inside.

Weigh the cost of a part of this paction with advertising, window display or "architect" design.

If something is similar to a high priced anchor product, the price is 1/10, which is not very common. People who can't afford expensive anchor points can always buy a pair of 300 dollars sunglasses.

Otherwise, $110 mobile phone hangs will do! The Prada website in the UK will prompt you where to pick up the cheap (at least online).

It will provide 10 women's shoes, 23 handbags and 54 "gifts" - similar gadgets such as Keychains, bracelet and golf peg rack.

A string of Bracelet sells for 60 pounds. What a shocking profit margin!