We have done a few episodes recently about how to manage cost increases and how to raise your prices. Dave recently came across the concept of Decoy Pricing that is worth looking at.

What is Decoy Pricing?

Decoy pricing is a strategy that aims to guide a potential customer towards a specific product or service by presenting an inferior choice. Listen in to learn more!

• 00:00:00 Small Business Show #371 for Wednesday, March 16, 2022
• 00:01:00 Ben Thompson’s Stratechery Newsletter about Shopify
• 00:02:41 Traveler’s Tips!
• 00:06:53 Expensive stuff!
• Sponsors
  • 00:08:08 SPONSOR: Novo: Get Your Free business banking account in just 10 minutes at BankNovo.com/SBS.
  • 00:09:49 SPONSOR: Shopify – For anyone to sell anywhere, Shopify is giving you a fourteen-day trial and full access to Shopify’s entire suite of features. Visit Shopify.com/sbs to get yours!
• 00:11:30 Decoy Pricing
  • The Popcorn Example. Large is the most profitable
    • Small – $3.50
    • Medium – $6.50
    • Large – $7.50
  • Service Providers: Use Bundling and Features
  • The Economist example
    • Digital Edition: $59
    • Print Edition: $125
    • Print + Digital Edition: $125
  • The Amazon Example
  • Search BusinessShow.co for “Story”
  • Tobi, the Snowboarder who started Shopify
• 00:30:35 Anchoring
  • “F*** the cup, pour it in my hand for a dime!”
• 00:35:45 SBS 371 Outtro
  • Next week: Delegating

The post What is Decoy Pricing and how can your Small Business use it? – Small Business Show 371 appeared first on Business Brain - The Entrepreneurs' Podcast.