Decoding Price Science Secrets: A Deep Dive into Episode X with William Poundstone
Mike interviews William Poundstone.
Get ready to soak in some game-changing knowledge as we unravel the mysteries of pricing psychology. In the latest episode, I enjoyed sitting with the brilliant William Poundstone, the mind behind “Priceless: The Myth of Fair Value and How to Take Advantage of It.” Strap in because we’re about to dissect the secrets of price science and negotiation tactics that can elevate your business game to new heights!
SUMMARY
William took a fascinating journey through the complex world of pricing psychology. We explored the influence of the first number named in a negotiation and how it sets the entire tone for the deal. Forget what you thought you knew – being the first to throw out a number gives you the upper hand, establishing control over the entire negotiation.
Surprising, right? We even debunked the myth that asking the other party for their price is the way to go. William’s insights on this had my mind doing backflips.
William shared a bombshell concept – the power of anchoring. We delved into studies proving that the first number mentioned profoundly impacts the final negotiated price. Picture this: you want to be the conductor leading the negotiation orchestra, setting the stage for the entire performance.
Forget the conventional wisdom – William’s insights challenged the norm and had us rethinking negotiation strategies.
The philosophy of giving before asking. Whether it’s Gary Vee’s philosophy or a principle from Benjamin Franklin, William reinforced that doing someone a favour builds a sense of obligation. This psychological quirk can be harnessed to your advantage in negotiations and business relationships.
William tantalized us with a sneak peek into the update of his book “Fortunes Formula.” This scientific gambling formula, associated with the legendary Claude Shannon, has a rich history dating back to the 1950s. Initially rejected by economists, it’s finally getting the recognition it deserves. Exciting news – the update is dropping next year!
We explored the peculiar world of text messages charging money while emails remain free. It’s a classic case of creating perceived value for something as simple as a text message. William shared the wisdom of creating price structures instead of just prices, using Starbucks’ three coffee sizes as a prime example.
Colors play a pivotal role in influencing consumer behaviour. Red grabs attention, and green is associated with money. We delved into the impact of colours on consumer perception. Pro tip: If you want people to think about bargains or good deals, incorporate some green – just like William’s book!
William dropped the mic with crucial advice: go with price science, not just gut feelings. With the internet making A/B testing a breeze, you can experiment to find the sweet spot for your prices. 2024 is the year to level up your pricing game. Dive into “Priceless” for a front-row seat to the secrets of price science.
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About Mike Fallat
Mike Fallat, aka The BookMan, is the owner of Dreamstarters Publishing and the Million Dollar Book Agency. They have helped 300+ entrepreneurs become bestselling authors. His goal is to help 1,000 entrepreneurs publish books and teach them how to use their books as a gateway to generating 7-figures.
Visit website for more information: https://www.milliondollarbookagency.com/
About Dreamstarters Publishing
Dreamstarters Publishing offers ghostwriting, cover design, and everything that is required to take an idea to a finished book (kindle, paperback, hardcover, and audiobook).
The Million Dollar Book Agency is the ultimate marketing CRM system for author-preneurs. Services include automated funnels, lead generation campaigns, book fulfillment, podcast management, press releases, virtual assistants, course development, and more.
Mike also hosts a podcast known as Million Dollar Stories and runs a membership-based site known as Million Dollar Circle. In addition to owning the book business, he invests in self storage real estate.
https://dreamstarterspublishing.com/