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236 How to Raise Your Prices (and Make More $) Using Price Anchoring

My Digital Farmer | Marketing Strategies for Farmers

Release Date: 11/08/2023

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More Episodes

How do you raise your prices and get your customers to buy at that price point? (And feel good about it?)

In today's episode, I'm diving into a crucial aspect of farm marketing: the art of price anchoring.

Have you ever gone to Amazon to buy something with a certain idea in your mind of what something will cost?... and then you see what Amazon thinks it should cost?...

For example, I recently  needed to buy a countdown timer for our Chopped Competition -- a big one that everyone can see from the room. Amazon had one priced at $300 (!!!), then another one at $65, and another one at $125.

Guess which one I bought?... Yup, the $125 one.

AND... I felt okay with it.

Honestly though, going into it, I was hoping for a $75 option. That's where my mind was. But then I saw the $300, and realized I was at the wrong pricing table. So the $125 suddenly didn't feel so bad -- like I had compromised and found a good happy medium in quality and price.

This... is price anchoring in action. And if you know how to use it, it can help you raise ALL your farm product prices, get people to buy at that price level, and make you more money.

Price anchoring is a psychological technique where consumers use an initial piece of information to base future buying decisions. You set a mental benchmark, or an "anchor" with a high price tag, and then this creates a perception that subsequent (slightly lower) prices are a better deal. (Meanwhile: you've also raised the prices of those subsequent, slightly lower prices, too).

You see this ALL OVER THE PLACE in the retail world. And in this episode, we dive into the details of how it works.

It's time you learned the psychology and strategy behind what makes this work.

Your homework from this episode is to set up a product with a higher price anchor, position your other products around it, and guide your customer this week to buy the thing you want them to (at the price you want).

This podcast was sponsored by Local Line, the leading e-commerce platform for the local food system. Try Local Line for your farm today! Local Line is offering a free premium feature for free for one year on top of your paid subscription. Claim your discount by signing up for a Local Line account today and using the coupon code: MDF2023. Head to my special affiliate link to get started: www.mydigitalfarmer.com/localline

This podcast was also sponsored by: The Thriving Farmer Podcast.  In this top-rated farm podcast, you'll learn the latest tricks and strategies of successful farmers, strategize with in-depth interviews with leaders in the industry, and connect with stories of farmers just like you. In our interviews, we focus on building farms that last, on setting up systems, knowing your customers, building your team, and creating a work/family/life balance. With over 15 years of farming background, your host Michael Kilpatrick has the experience and authority to bring you practical advice, ask the hard questions, tease out the gold nuggets, and help share what it’s really like to build a profitable, sustainable farm.

Subscribe wherever you listen to your podcasts or visit: https://www.thrivingfarmerpodcast.com/

Hit play and let's get started!

Some of the resources mentioned in this episode:

Join my free email list! I have a great "Crash Course in farm marketing" that will guide you through the marketing jungle over the course of several months. Each week, you'll get a new email with suggestions and tips to make your marketing better.

Join my CSA Renewals Course: CSA Early Bird Campaigns that Convert. In this program, I teach you my exact process for how I build my renewal promotion campaign every fall, that gets 80-90% of my members to sign up again by November 1st.

Sign up for my CSA Academy -- and get access to my CSA member resource library to use for your own CSA (as long as you're a paying member). Use coupon code TRIAL to get your first month for $1.

Find my Facebook group for farmers!

Follow me on Instagram for a daily IG story tip on marketing! @mydigitalfarmer