“Sticker shock” refers to a price so high that when you reveal it to the customer, she is flabbergasted and immediately protests that “your price is too high” or “I could never afford this”.
If your customer experiences sticker shock, it means that you have not convinced the buyer that the price of the product is a “drop in the bucket” compared to the value of the product.
Even if you’ve done a good job of communicating value, the prospect may experience sticker shock if the price is extremely high or beyond their means.
Sticker shock reduces your chances of closing the sale: if the customer gasps when she learns the price, she’s probably not ready to pay it.
If as a marketer or salesperson you can head off sticker shock before it happens, your odds of closing the sale increase tremendously.
But how do you prevent sticker shock?
One way is to show the customer products in your line with higher prices before showing him the product you want him to buy.
In his book “Influence”, Robert Cialdini describes how this is done in a retail setting.
Say you want to sell $100 sweaters in your store…but are afraid your customers will faint at the price.
You put a table in the aisle near the front door and place three stacks of sweaters on it.
As the customer walks into the room, she sees the first stack. All of the sweaters in this pile cost $200.
“What a rip-off!” she thinks. “No way would I pay that.”
Then she examines the second pile, which contains $150 sweaters.
“Phew,” she thinks. “That’s a little better.”
She continues to go down the table until she comes to the third stack—your $100 sweaters.
By that time, she is so relieved that a sweater won’t cost her $200 or even $150 that the $100 you are asking seems like an incredible bargain.
Breaking the price into monthly installments is another effective way to minimize sticker shock.
For instance, the Franklin Mint was selling a collectible chess set.
The pieces were each hand-painted pewter miniatures of civil war figures, sent to you one per month.
For these hand-painted collectible figurines, the price was only $17.50.
Seems like a bargain for a collectible item, right?
But if you multiply $17.50 times the number of pieces (32), the entire chess set costs a hefty $560 (the board is yours free once you buy all 32 pieces).
If your ad had said, “Civil War Chess Set – $560,” how many do you think you’d have sold?
Not many, right?
Another way to avoid sticker shock is to present the price at the beginning – and get any price objections out of the way up front.
Most mailings for expensive products build desire and perceived value, then reveal price once the customer is sold.
An opposite approach is to state price up front and use the exclusivity of a big number to weed out non-prospects.
Example: “This service is for serious investors only. It costs $2,500 a year. If that price scares you, this is not for you.”
An element of exclusivity and snob appeal is at work here.
Also, the more you tell someone they do not qualify, the more they will insist they do and want your offer.
The classic example is Hank Burnett’s famous letter for the Admiral Bird Society’s expedition.
The second paragraph states: “It will cost you $10,000 and about 26 days of your time. Frankly, you will endure some discomfort, and may even face some danger.”
Once the reader has heard the price and decides to continue reading, the possibility of sticker shock is eliminated…because he already knows what the product costs.
Surprise is eliminated…and sticker shock is all about surprise.
Bob Bly is the author of “World’s Best Copywriting Secrets” and has written copy for more than 100 companies including IBM, Boardroom, Medical Economics and AT&T. He is the author of more than 75 books and a columnist for Target Marketing, Early To Rise and The Writer. McGraw-Hill calls him “America’s top copywriter”.

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