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Resourceful Designer: Strategies for running a graphic design business

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Resourceful Designer: Strategies for running a graphic design business
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Now displaying: July, 2021
Jul 26, 2021

Use these psychological tactics to change how people see prices.

I recently read a very in-depth article by Nick Kolenda on the psychology of pricing. I was so fascinated by what he revealed that I immediately changed some of the ways I display prices for myself and the things I design for my clients.

I thought I would save you time by summarizing the 42 research-proven psychological tactics in Nick's article in a podcast series. I’m sure you’ll find it very useful in your design business. All studies I reference are linked to in Nick's article, in case you're interested.

As Nick puts it, At the end of the day, price is merely a perception. Nothing more. Nothing less. In fact, you can change that perception of how people interpret a price simply by changing the visual traits of the numeral.

It’s a given. The number 5 is greater than 4. And 6 is greater than 5. But using these psychological pricing techniques, you can actually make prices seem lower - without reducing the actual price.

According to a 2002 study, most people don’t remember exact prices. Rather, they remember general prices.

Have you ever looked at a price, and later when asked about it, only have a general idea of how much it was?

When I get home from the grocery store and my wife asked me how much it cost. I don’t always remember the exact price. Was it $131 and change, or was it $138 and change? So I might tell her it cost "$130 something dollars."

Because humans have such a hazy memory regarding prices, we can use certain psychological tactics to influence people into seeing smaller prices than they realize. Let me get right down to the actual tactics.

Tactic 1: Reduce the Left Digit By One

You’re probably already familiar with this tactic. Reducing the left digit by one creates a perception of a lower price. $199 is viewed as a much better deal than paying $200.

Gumroad's conversion rates study shows that pricing things at $0.99 instead of $1 or $2.99 instead of $3, or $5.99 instead of $6 conversion rates increase by 2-3%.

According to a 2005 study. Our brains encode numbers so quickly that we register the size of the number before we finish reading the entire number. When reading $1.99, our brain registers it as a dollar something which is lower than $2 something making it more desirable.

Nick offered a bonus tip to this tactic. Superscripting or minimizing the digits after the decimal places more emphasis on the number before the decimal. So $1 with a small 99 next to it appears smaller than $1.99 all the same size.

Tactic 2: Use Prices With Fewer Syllables

I'm a bit skeptical about this tactic. But according to a 2012 study, the more syllables there are, the more mental resources we need to process the information.

The same principle applies to numbers. If we spend more mental energy reading a number or price, we falsely perceive that price as larger. The fewer syllables involved, and we perceive that price as smaller. It doesn’t matter that you are not saying the number out loud. Your brain does it for you.

This same study found that a slightly higher price with fewer syllables was more favourable to people than a lower price with more syllables.

For example. $27.82 has 7 syllables. $28.16 has only 5 syllables. There’s only $0.34 between the two prices. But people were more inclined to spend the higher amount.

As I said, I’m skeptical about this one, but the studies do show it to be true.

Tactic 3: Display Prices In A Small Font Size.

This one applies to what we do as designers.

According to a 2005 study. Human brains conceptualize size with value. If you display the price in a smaller font size, people will perceive the price to be smaller.

Another trick is to position larger elements around the price to create a visual hierarchy. The larger elements will make the price visually smaller, which in turn makes the perceived price smaller.

The revers works for discounts. Display discounts larger to emphasize their large value.

Tactic 4: Remove The Comma.

I really like this tactic.

According to a 2012 study, removing the comma from a price makes it seem lower.

This one ties into tactic 2 of having fewer syllables. A price displayed as $1,499 reads as one-thousand four hundred and ninety-nine–10 syllables. Whereas a price displayed as $1499, without the comma, reads as fourteen ninety-nine–5 syllables.

I may be skeptical about the syllables thing. But I cannot argue that $1499 sounds like a better deal than $1,499.

Tactic 5: Use Words That Indicate a Reduced Magnitude.

According to a 2005 study, the words associated with a price influence people’s perceptions of that price.

For example. Two identical pairs of inline skates are selling for the same price. Both packages list the same features and benefits. However, one pair emphasized “High Performance” while the other pair emphasized “Low Friction.” The pair that emphasized “Low Friction” outsold the other pair.

The wording associated with the price caused the perception of the price to change.

How can you incorporate this into your design business?

Maybe you can promote low-maintenance websites as opposed to high converting websites? I don’t know. But it might be worth doing some A/B testing.

Tactic 6: Separate the Shipping and Handling.

According to a 1998 study, people are more likely to use the base price when making comparisons.

By partitioning your price, meaning separate the price into multiple components instead of offering a total price, you lower the base price, which creates a perception of the offer being more affordable.

A 2006 test run on eBay showed auctions with an opening bid of $0.01 and a shipping cost of $3.99. Outperformed auctions for the same item with an opening bid of $4 with free shipping.

The total prices were identical. And yet, the first one received a lot more traction.

Tactic 7: Offer Payments in Installments

By offering people an option to pay in smaller increments rather than one lump sum, you anchor their perception on the smaller price.

Let’s say you are pitching a new website design to a client. Instead of quoting them $6000, quote them three installments of $2000 each.

Don’t get me wrong. Client’s are not stupid. They know that three installments of $2000 are $6000. But by offering installments, you taint their comparison process.

Even though the client knows your total price is $6000, if they compare it to another web designer who quotes a total of $6000, you’re lower installments will feel much more appealing to them and have a good chance of influencing their decision towards you.

Tactic 8: Mention the Daily Equivalence.

You see this tactic often used by charities and non-profits. Instead of mentioning the monthly or yearly cost, they share the low daily price.

A 1998 study proved that using a daily price creates a perception of an overall lower price.

This doesn’t mean you shouldn’t mention the regular price. In fact, it should still be the primary focus. However, mentioning the daily equivalence anchors people towards the lower end of the price spectrum.

For example. Being a member of the Resourceful Designer Community is $14.95/month. That works out to $0.49 per day. Is having a group of fellow design peers who are able and eager to help you grow your business not worth $0.49 per day to you? If so, join today.

A bonus tip: if you can’t reframe your price into a daily cost, a 1999 study shows that the same thing can be done using petty cash expenses, such as the cost of a cup of coffee.

Tactic 9: Be Precise With Large Prices

This is one of my favourites out of all of these tactics. It’s also the first one I started implementing.

When dealing with large prices, people are willing to pay more money when a price is precise instead of rounded.

For example,  A website project costing $6834 as opposed to a website project costing $6000.

Why is that?

A rounded price is more suspicious. A client may question how you came up with a nice round price of $6000. Did you pick it out of thin air? Did you calculate the actual cost at $5700 and decided to round it up to $6000?

However, a precise number, such as $6834, leaves little room for suspicion. If you are quoting a precise number, clients will readily believe it's the actual price of the project. This thought pattern makes people much more agreeable to the price.

A 2007 study analyzing 27,000 real estate transactions showed that home buyers were willing to pay more, often thousands and even tens of thousands of dollars more, for a home listed at a specific price compared to a home listed at a rounded price.

These same people were also less likely to negotiate, or if they did, they would negotiate in much smaller increments than those bidding on a home with a rounded asking price.

By providing a specific price, such as $6834 for a website instead of $6000, the client is much more likely to trust what you are selling them and be agreeable to the price.

As I said, after reading this one, I immediately stopped quoting rounded prices to my clients. It’s still too early to tell how it’s going, but so far, so good.

Use specific prices instead of rounded prices

Want more tactics?

Tune in to next week's episode

Resource of the week Chrome Application Shortcuts

A convenient way to turn a website into a desktop application is by using Chrome Applications Shortcuts. This is especially useful for browser-based tools such as invoicing/bookkeeping and Customer and Project Management Software. Instead of searching through dozens of open browser tabs for the right one, create an application shortcut and treat the webpage as a desktop application.

To create a Chrome Application Shortcut, open the website, you would like to turn into an application in a browser tab. On the far right of the address bar, click the three vertical dots. Select “More Tools” > “Create Shortcut”

Name the application in the pop-up window and be sure to check “Open as Window.” then press Create.

A new Application icon will appear in the Chrome Apps folder within your Applications folder. You can now use it just like you would any other application. You can add it to your Dock. You can create Aliases from it. And you can easily switch between it and your other applications via the Control Centre.

Give it a try and let me know what you think.

Jul 19, 2021

Do you want to know the secret to a satisfying design career?

Let’s face it; it’s impossible to be completely happy and satisfied with whatever career choice you choose. I mean, even being a professional chocolate taster has its drawbacks.

But out of all the gazillion different things you can do with your life. Being a graphic or web designer, at least in my opinion, is one of the more satisfying options out there. Then again, I may be a bit biased.

But just like every other career choice out there, being a designer has its ups and downs. You get to make money using your creativity. You get to design things that change peoples’ lives. Your creations are displayed for everyone to see and admire.

But there’s the flipside. Clients don’t always have the same vision as you. Some people are demanding to work with. And don’t get me started on taxes and all the administrative work involved with being a designer.

As I said, ups and downs. Luckily, and I’m sure you’ll agree, the life of a designer is filled with more ups than there are downs. That’s what keeps us going.

But what if I told you that you could increase the number of ups you experience? What if I told you there’s a very simple secret that will allow you to have a happier and more satisfying design career? That secret boils down to four words.

But hold on, before I tell you those four words, I want to share a scenario with you. Something you’ve probably experienced yourself at some point in your design career. And if you haven’t, give it time. I’m sure you will.

Let me know if this sounds familiar.

You’re hired to design a logo for a client. Being the good designer, you are you hunker down and get to work sketching out dozens, if not hundreds, of different ideas for the logo.

Most of these will be dismissed almost as soon as you make them. Some of them you know even before you make them that you won’t use them, but you have to get the idea out of your head. Or am I the only one who does that?

After a while, you are drawn back to a handful of your ideas that show merit. Some of them you play and tweak, trying this and that until you realize they won't work and discard them. But there are a few that are promising. So you concentrate all your talent and design skills on making them just right.

In the end, you are left with two or three logos ideas. You then create a nice presentation, including various mockups to showing how each one would look in real-world situations. Then it's off to present to the client.

Even though all three ideas are good, you secretly have your favourite from the bunch. You know, The one you’re already picturing in your portfolio. The one you can’t wait to show off and let everyone know, “Hey, I designed this logo.” Yes, you always have your favourite.

Then, of course, there’s your second favourite. You don’t like it as much as the first one, but still, it’s a damn nice logo. Not that there’s anything wrong with the third logo. After all, you wouldn't present a logo to a client that you didn’t think was good enough, would you? I didn’t think so. But logo number three, even though good, doesn’t compare to logo one or even logo two.

You present your three designs to the client. You may even try to upsell your favourite logo a bit more than the other two. There’s no harm in doing that. And then you sit back and wait for the client’s decision.

You know where I’m going with this, don’t you?

Regardless of your effort and your desires, the client chooses the third logo.

You put on your happy face as you pretend to share in the client’s enthusiasm, but in your gut, you feel let down.

How could they choose logo number three? Can’t they see how great the first logo is? Or even logo number two would have been fine. But no, they chose logo number three.

I’m sure this exact scenario is why some designers practice the one-concept approach. They don’t offer their client’s any options. Instead, they offer them one concept-take it or leave it. If that’s how you work, then more power to you. But that’s not the way I do things myself.

Why did I share this scenario with you? It’s because I was hoping you could think about how you would feel in that situation. You were so sure the client was going to fall in love with the same logo you loved. And they didn’t.

You feel confused.
You feel torn.
You feel let down.
You feel dejected.

Remember I told you that the secret to a happy and satisfying design career came down to four words? Well, here they are.

IT’S, NOT, ABOUT, YOU.

It’s not. It has never been, and it never will be. A happy and satisfied designer knows that everything they do is about the client. When you embrace this concept, your design career becomes so much easier.

You may have liked logo number one better, and that’s fine. But that wasn’t the client’s choice. To them, logo number three is the best one. And you know what? They’re right. At least for them. It’s not about what you think. It’s about what they think. The client is more than happy with their decision to chose the third logo. And so should you be. After all, they hired you to create something for them, not something for you.

Sure, you wish they had chosen the first logo so you can showcase it on your social media and in your portfolio. But it’s not your logo; it's theirs. Once you move on to the next design project, you’ll give their logo very little thought. On the other hand, the client is going to embrace and live with your creation for hopefully a very long time.

So regardless of your preferences, it was never about you. It was always about the client. Remember that.

But “It’s not about you” doesn’t only apply to client preferences in logos. It applies to many aspects of your business.

The RFP (Request For Proposal) you submitted gets turned down. The person reviewing it had their reasons for saying no. Maybe you didn’t match their criteria. Maybe someone else submitted a better proposal. Maybe the person judging the RFP already had a preference in mind, and the process was just a formality. Regardless, It’s not about you.

A client turns down your website proposal stating the price is too high. Did you overprice the project? No. You priced it where you thought it should be. The fact that the client thinks it’s too expensive is not about you. It’s about them. It’s about their expectations.

Now you do have some control over client expectations. The way you present your proposals, the way you explain the value you bring, the way you show how much of a benefit working with you can be. All these things can help sway a client’s expectations. But ultimately, it’s not about you. It’s about them. They make the decision they think is right for them. And even if you feel it’s the wrong decision. It’s still not about you. It’s all about them.

If you remember that it’s not about you. It will make every hurdle in your design career much more palatable as long as you do the best that you can. As long as you present the best options. As long as you’re sincere and honest in your dealings. Then the results will never be about you. You can be satisfied that you’ve done everything possible. The final decision is in their hands, and therefore, it’s all about them.

Hopefully, you'll learn something from the process, take note of it for next time, and then put the whole thing behind you and move on.

It’s not about you” applies to smaller things as well.

The client doesn’t like a suggestion you make. It's not about you.
The client doesn’t like the colours you chose. It's not about you.
The client doesn’t like the font you used. It's not about you.
The client doesn’t like the web feature you added. It's not about you.

None of these are about you. And therefore, there’s no reason to get upset about them.

And even if the client does agree to your price and hires you. Even if they love your choices and ideas, even if the client praises your designs, it’s still not about you. You may feel good about it, and you should. But It’s still all about them and how they feel.

When you learn to embrace an “it’s not about you” attitude and learn to let go of all the little things that may upset you about this career. You will notice that your life as a designer will be much happier and much more satisfying.

Always remember, your goal as a designer is to make the client happy. You’re there to serve them to the best of your ability. In the end, it doesn’t matter what you think, because it’s not about you.

And when your clients are happy with what you do for them. When they come back to you over and over again with more design projects. When they tell everyone about the great services you offer. When they treat you as a trusted partner, well, at that point, maybe it is a little bit about you.

Resource of the week Backblaze

There are not many tools on my must-have list. Even Divi, my ultimate choice for building WordPress websites, isn’t a must-have.

But one thing everyone with a computer should have is a backup strategy—a way to safeguard all those precious files you have. And an extra hard drive is not enough.

And that’s why I believe that no backup strategy is complete without BackBlaze.

Backblaze is a cloud backup solution that gives you peace of mind, knowing all of your precious files are safe and secure, regardless of what happens to your computer.

You may be thinking, I don’t need Backblaze. I have DropBox or Google, or One Drive. Let me tell you that those platforms were never meant to be a backup solution. They’re great for storage and file sharing but not for backup.

For a true cloud backup solution, you need something that was build just for that purpose. And that’s Backblaze.

I’ve had Backblaze installed on every computer I’ve owned for the past decade. And it’s well worth the low yearly cost of the service.

Give it a try. You won’t be sorry.

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