Pricing in professional services is often treated as a rational exercise. It is anything but, says Lee Curtis. Psychology, not spreadsheets, drives client decisions.
We like to think pricing is rational. It isn’t.
Take a restaurant wine list. Most people won’t buy the cheapest bottle, because they don’t want to look like they have to. But nor will they buy the most expensive. Instead, they drift to the middle, guided less by taste and more by social norms.
Or consider the classic ‘was £200, now £149.95’ label. We feel like we’re winning, even if £149.95 was always the intended price.
We are all susceptible to this. Including your clients.
Log in to read more
