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Writer's pictureGeorge Boretos

Price isn’t just a number

It's your secret weapon for “messing” with people’s minds and wallets!🎯


Ever heard of the “magic” BBDO selling equation?


✨ Selling = [Performance plus Emotion] divided by Price ✨


But what does this mean in practice?


Performance is obvious! The better the product, the more you sell.😎


But what about Emotion?💖


This is where perception comes into play! The image, the status, the social currency. The rumors, the likes, the dislikes.


All of these are part of the product’s “story” and affect how we perceive the product, how much we like it, and, eventually, how much we are willing to pay.


And then, there’s Price. 🤑💵


Price has a DIRECT IMPACT on sales for obvious reasons:


🙋‍♂️ Customers want to minimize cost, so higher prices discourage purchases.


💼 Sellers want to maximize profits, so higher prices incentivize them to sell more.


So far, so good!


But Price has some surprising effects on EMOTION, too:


❓A very low price might seem suspicious, signaling low quality or a potential flaw.


🌟 A high price can be perceived as a sign of premium quality or status.


Bottom line?


➡️People don’t just buy products for their features. They buy into the story behind the product and how it makes them feel!


➡️Price dramatically affects the likelihood of selling a product but also serves as a powerful signal of emotional and social value!


PRICE IS MUCH MORE THAN A NUMBER!💡 


Special thanks to Dimitris Paximadis, a continuous source of wisdom and inspiration, for bringing the BBDO formula to my attention!🙂🙏



 

Interested in learning more about AI-Powered Price Optimization and Strategic Forecasting?



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