Price Transition Shock

““If you want to grow old as a pilot, you’ve got to know when to push it, and when to back off.” — Chuck Yeager, first pilot to break the sound barrier

Key Ideas:

• When you change the price of an offer, the effects aren’t limited to your current target market. Often, you’ll experience a sudden shift in the target market your offer appeals to: a Price Transition Shock.
• A change in prices can change your typical prospect overnight.
• As you test different pricing strategies, you’ll notice certain thresholds where you stop appealing to certain types of customers and start appealing to customers with very different characteristics.

Questions for Consideration:

• What price points have you tested? What types of prospects did you attract at those prices?
• If you raised or reduced your prices, what types of prospects would you attract?