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When it comes to budgeting for big purchases, many people tend to procrastinate. This can often lead to financial stress and anxiety down the road. However, budgeting separates you from the money. As you move further away from these funds, payments feel less painful.
A pricing tactic is being used by some companies to encourage customers to budget early. This tactic involves providing a discount for customers who budget early. The discount is typically a percentage off of the total purchase price. This pricing tactic is designed to encourage customers to plan their purchases in advance and to take advantage of the savings that can be obtained by budgeting early.
A great example of this is sharing the date on which you can buy tickets of your favorite band. In the same article you name the price of the tickets. People can also subscribe to receive an alert.
They know the price before subscribing to the alert. When the alert is being send the receivers have already budgeted the expenses and are, because of that, more likely to buy the ticket.
The same could be said when announcing the pre-order of your product. People can subscribe to a newsletters or your social channels, you already share for what price they can get the product during pre-order. When the pre-order is launched people are less hesitant to buy it. They had all the information up front.
Are you curious about how to apply this bias in experimentation? We've got that information available for you!
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