236 How to Raise Your Farm Prices (and Make More $) Using Price Anchoring
November 8, 2023
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 prices, get people to buy at that price level, and make 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. 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.
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 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!
- Listen to this episode on Stitcher.
- Listen to this episode on Apple Podcasts
- Listen to this episode on Google Play
- Listen to this episode on Spotify.
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
Subscribe and Review in Apple Podcast
I’d love for you to subscribe to my podcast! I don’t want you to miss an episode. Click here to subscribe in Apple Podcasts!
Now if you’re feeling extra loving, I would be really grateful if you left me a review over on Apple Podcast, too. Those reviews help other people find my podcast and they’re also fun for me to go in and read. Just click here to review, select “Ratings and Reviews” and “Write a Review” and let me know what your favorite part of the podcast is. Thank you!
My hope is to feature guests periodically on the show. If you know someone who is innovating in the area of marketing as a farmer, please send me an email at mydigitalfarmers@gmail.com.
Right click and save as to download this episode to your computer.