Ask The Accountant
Avoiding Manipulative Marketing Practices
One of my goals is to get to the root of the money matter, which means that we need to pull things out by the roots because that is the only way to eliminate a weed or, in other terms, to eliminate the problem. Sadly, many people do not want a solution to the problem. I think about what is eating us up financially and stressing us out? What is preventing us from really enjoying business ownership? Should we be on a financial roller coaster? Why is small business ownership looked at as if it is not possible, or is that something we are told to psychic us out from trying to price correctly? So, I want to give you a couple of examples of what is eating up some of our marketing profits. Many people think a lot of people like the twisted marketing practices.
Many large corporations are marking up pricing to give you a perceived discount, but most business owners don't know that this "discount" is factored into their pricing. People think everyone is doing this because of this practice, but everyone cannot afford to give you a discount. The small business now believes they need to compete with big business and lower their pricing when they really can't afford to drop their pricing to get the sale.
While researching, I came across something called the "Decoy Effect" for sales and marketing. They like to make you think you are getting a good deal. Today, we are going to look at the decoy effect example. The decoy effect nudges people towards the most profit package or sale.
In this example, "nudging" is not considered manipulative. Since when are manipulative practices justifiable. I think this is the mind of the liar. The cheat thinks it's alright to push you in a particular direction and say things like, "they deserve it or needed help."
Advertising pushes the consumer to select the most profitable selection without the consumer understanding what's happening.
In turn, the consumer will use this on the small business owner to "negotiate" pricing. However, we can't participate in these games, so small business ownership is perceived as unprofitable. Looking at the "regularity condition" is also why new or small business owners are discouraged from offering their products or services in a new or different way. We need fresh and different from the big business blueprint. The same people own most big businesses. When I looked up these words and practices, it has to do with the fact people don't want you to formulate a thought. Technically you should have an offering, and we should compare those with other offerings, but 9 out of 10 times, people want that one person to give them what they want. Did you know people will hold out for a lower price even if your price is acceptable?
I can see this is one reason economic downturns strike small business owners. If you are always marking down pricing and living sale to sale, when do you save money to get you through or even take time off? I want you to learn how to be profitable and overcome these poor business practices because we can! Let's start to turn this thing around and take back our profits!
Learn more with the "B&P Building A Fair & Profitable Pricing Plan."
Learn more about how to price for your business. Take back your profit potential!