TIPS60 – Where do clients psychologically "break" on price points?
Here is another of our videos offering tips and inisights into the business of photography. a transcript of the video is included after the jump.
TRANSCRIPT:Here are a few thoughts on pricing breakpoints. I'm John Harrington. When it comes to photography, frankly any business, when you're talking to clients about price they do have pricing breakpoints $500, $1,000, $2,000, $5,000, $10,000 and it goes on, but let's work with those for right now. Most clients, when you're talking to them, do have a dollar figure in their head when you're talking about the budget, but they have these breakpoints and so that's why pricing is now $9.99 or $999.00 rather than $1,000. There is a psychology behind pricing. So when you're talking to a client you need to understand what their pricing you know where they're going to react, what their breakpoints are. Get a feel from them about what they are trying to spend and understand that if you increment say above $5,000 or $6,000 that the breakpoint probably is closer to $10,000. If your break point is somewhere in the $500 range they might actually go right above $500 they might go to $1,000.
Please post your comments by clicking the link below. If you've got questions, please pose them in our Photo Business Forum Flickr Group Discussion Threads.