The price is right.
There’s a supermarket in Notting Hill that collaborates with a nearby restaurant to create “Tuna Fight Club” and charges £195 per ticket for a meal and a single drink.
A brand new Porsche 911 Turbo S will cost you at least £150,000. Alternatively, you can get a refitted 40 year old 911 for between £1.5-2million from Singer – if you’re prepared to wait for three to four years.
The median fee rate for a senior barrister in the UK is £375 an hour. However, if you wish to engage Lord Pannick, he charges 2,567% more at £10,000 per hour.
These three, and some others, understand pricing – whereas the majority don’t.
A while ago, we had the opportunity to work with Professor Robert Cialdini, author of the bestselling book “Influence: Science and Practice” helping him and his team to translate his academic tome into training materials for commercial application.
His work has defined six ways to influence people, either to buy or spend more – and these principles are easy to understand, but require consistent application to work.
The Supermarket of Dreams leverages the principle of social proof – others (of a defined profile, or “type” if you prefer) go there, and if you wish to be identified as belonging to this tribe then you must go too.
Singer maxes out on the principle of scarcity. Porsche makes roughly 1,000 911s a week, but there’s just a handful of Singers made available each year.
Lord Pannick knows the power of the principle of authority. There can only be one most expensive barrister in the UK and it’s him. Consequently, when only the best will do, he’s sought out, which perpetuates his authoritative position.
The reason why so many businesses, and individuals, don’t command a premium is not because their brand isn’t right, (although often that’s an issue too), but because they don’t know how to use the principles of persuasion – master these and you too could command a 2,500% price increase.
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