Étienne Garbugli

Entrepreneur & Lean B2B Author

Set a base price

By Étienne Garbugli | September 29, 2010 | 0 Comment

Would you expect a car listed at $20,000 to go for $4,000 after negotiation?

Would you expect a $900 TV to go for $25?

Base (or original) prices are there for a reason. They act as anchor points when negotiating a purchase (Dan Ariely). Without them, negotiations would be unpredictable.

Set the price, set the negotiation range. Our brains will always think relative to that reference point. Reasonable people won’t expect a $5,000 discount on a $6,000 purchase.

If your product can be negotiated, predict the range and set your base price accordingly. Salesmen do it to you all the time.

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Étienne Garbugli

Etienne works at the intersection of Technology, Product Design and Marketing. He’s a two-time Startup Founder, a four-time entrepreneur and a UX research expert. Etienne published Lean B2B: Build Products Businesses Want. The Lean B2B methodology helps entrepreneurs around the world build successful businesses.

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