Negotiate Anything

Melina Palmer: How to Apply Behavioral Economics So Customers Buy

9 snips
Jan 9, 2024
Guest
Melina Palmer
Melina Palmer, acclaimed author and instructor of applied behavioral economics, discusses the psychology behind pricing, hidden desires, and the importance of perceived value in pricing strategies. She explores the impact of psychological biases on negotiation and shares interesting examples like the pricing of grilled cheese sandwiches. Discover how to navigate buyer behavior and set irresistible prices.
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ADVICE

Stop Overthinking Price Endings

  • Avoid dwelling on exact price digits like ending in five, seven, nine, or zero.
  • Choose a pricing style fitting your business image and move on for better pricing confidence.
INSIGHT

Internal Biases Affect Pricing

  • Pricing struggles often stem from internal biases such as optimism bias and planning fallacy.
  • Recognize these biases to avoid delaying pricing decisions and focus on value-driven pricing.
ANECDOTE

The $214 Grilled Cheese Example

  • A New York restaurant sells a $214 grilled cheese sandwich with flecks of gold and champagne.
  • Such high-priced items act as anchors to make other prices seem reasonable and attract attention.
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