How should I use price points strategically to attract and convert high net worth buyers?

Price points work on two levels. First, you need some really expensive items in your store—pieces priced at $15,000, $20,000, $25,000, even if your typical work sells for much less. High net worth individuals will sometimes simply buy these expensive pieces, but they can’t if you don’t offer them. What do you have to lose by listing them? Second, this creates a phenomenon called price anchoring. Think of a luxury car dealership with a $250,000 vehicle in a glass showroom—most people can’t afford it, but its presence makes them feel better about leasing a more modest model for $450/month. The expensive item makes them feel frugal and smart about their purchase. Similarly, having very high-priced pieces in your store makes other buyers feel better about purchasing your mid-range work. They feel they’re getting a good deal and being financially responsible. This psychological effect increases conversions across your entire price range.

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Asked by an artist considering pricing strategy · Answered by Patrick Shanahan · art-marketing-podcast · 2021-02-03