KMA Goldmine TV E26KMA Goldmine TV- Episode 26 – Chunking down

“KMA GOLDMINE TV EPISODE 26 – Chunking Down “

 

 

Here, Kim Marlor talks about clever techniques to make prices look or appear smaller!

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Hi, it’s Kim here from KMA Goldmine TV bite size bits to help you grow your business from where it is now to where you want it to be.

I’m back in Costa Coffee again for another episode of KMA TV.  I bet you think I live here. I don’t honest. Just got an interesting thought for you and that’s why I wanted to kind of be here.  It will all make sense in a moment. Cup of coffee, Costa. You know, somewhere between £2.25 and £3.50 depending obviously on what you have in all the shots in the extras, but have you thought about it in your marketing? How you break stuff down?  I’ve got an interesting Ad here. Okay. Now it shows you a picture of a 27-inch iMac and also a coffee drink. In essence, like you could go here. It doesn’t actually say it’s Costa, but bear with me on that one.

So, it’s, obviously a high-end coffee, £3.45 a day, £2.45 a day. Who’d have thought it? Who’d have thought that you could get an I Mac PC for less per day than the price of a cup of coffee.  Now, there’s a reason they’ve done that clearly because you know, you can’t go out and buy an I mac PC for £2.45 but what they’ve done there in essence is what we call chunking it down. They’ve taken the price, the total price of an iMac, which you know in truth is well over a thousand pounds and chunked it down and compared it to something that we wouldn’t think twice about. You know, whilst you might not necessarily go and buy a Costa coffee every single day, when you think about a cup of coffee compared to a PC and the relative costs per day, it makes shrink and It makes it seem so much smaller.

So, it’s a really interesting way that a lot of bigger companies use to market their products when they want it to seem cheaper than it actually is. There’s another technique as well, but it’s used in pricing, which is called anchoring. You’ll see this a lot of times in restaurants where they’ll have a bottle of champagne on the menu that’s you know, crystal or really expensive version of champagne, a hundred and odd pounds per bottle. And then they’ll show the other ones, which might not be cheap. But in comparison to that, £35 or £30 or £28 seems an absolute bargain. And this is what companies are using to make their purchase seem a lot smaller and to get you to buy. So, for example, in the restaurant you might not ever dream necessarily unless it was a really special occasion of paying, that kind of money for a bottle of champagne.

But you won’t think twice about buying a bottle of wine in comparison. Well why not? Let’s go for it. Likewise, you wouldn’t think twice about having a cup of coffee in Costa. So when that shown to you in an advert, it gets you thinking differently and makes you want to investigate that and look at it in more detail. Whereas before, you may never have even given it a second glance. So can you use that in your marketing for your product or service? How can you compare your product to make it seem a lot smaller?  Could you use? You could use it on your marketing, use it on your quotes just to make it seem smaller. So have a think about that in your business.

That’s it for this week’s edition of KMA Goldmine TV. Maybe I’ll be back next week from Costa. You’ll have to wait and see bye for now.

If we can help with anything included in this edition or if you’d like to talk to us about anything Accountancy or Business development, then call us now on 0161 410 0016. 

 

 

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