Yeah, Own your anchor. So what are some ways that we can own our anchor and start comparing our identity on those? Yeah. So I've done this for clients before. So really, early on, I worked with Chobani, as a matter of fact when they were trying to introduce them themselves into the marketplace. So Greek yogurt guys. There was a time a decade ago where nobody knew what Greek yogurt was. I know you feel weird now, but exactly people like in America were like, I don't know what to do with this. It's not people. Even you play back then. The French yoga is kind of. It was sexy Greek yogurt nobody knew anything about. They didn't know how to eat it. They didn't know anything about it, they thought. Is it a spread? So Chobani is a very expensive yogurt. It just is, but it's a higher quality. All those types of things you want better quality, better taste. But it's a high quality. It's it's a higher price yogurt. So they were asking us for help around. How do we communicate our value proposition? We gotta keep telling them that, you know, we have great organics In fact, some of their stuff was organic or that the creamy texture. And I said, Stop talking about the things that you are You're never going to be able to convince people that you can double the price of their daily yogurt like you just can't do that. You can't tell people there's enough benefit or it's gonna be way too costly. What you need to do is find in comparison to what, And we went to the deli section of the store. So we all went out, were over over, in over in Brooklyn. We all went over to a deli section of the grocery store, and we said, What are things in the deli that are comparisons like breakfast? What breakfast sandwiches are in the deli or high priced things that are people eat for breakfast, like crepes or whatever Anything we could do to compare ourselves because we don't want to be compared to yogurt and you play and you know those Go Gertz. That's terrible, right? We're always gonna be overpriced. Mini Cooper, we went there. So the first thing I want you to do is if you're in the situation, you want to raise your prices, you have to first find the anchor, and what you want to do is go find a higher priced service that you can at least fit into to show that you should be compared to that. Mini Cooper was also a car that they want to compare themselves to a Porsche, maybe around the same size. So it wasn't it wasn't so far out of the realm of possibility. But you got to stretch your thinking. Steve, you're not competing against other website people who build websites. That's ridiculous. You do so much more than that, right? So you never want to have that anchor on that. And that's why I love about the golden toilet. You need to anchor yourself on companies that drive great economic value and can help you scale a company. And those people sometimes charge hundreds of thousands of dollars to help you scale. That is a very different point of comparison. So you guys brainstorm on what products are out there that are similar to you, but charge a lot more money, find those products first. Wow. So our brains crave meaning, and so that's always in play, and yet we we fall for the trap. I'm focusing on features and things. I wonder I wonder. Like, let's talk about another. Just a pizza restaurant. You love to talk about pizza. How do you How do you anchor it gets someone other than focusing on the heat that you cook the pizza or something like that. Yeah. I think that if you compare yourself to another feature like we have better tomatoes, you may be able to charge a little bit more. But frankly, you're always gonna be in that feature set. And the feature set is not a very good point of comparison. So what you need to do is say, Well, what do you really deliver as that pizza restaurant? What do you deliver? Yes. You deliver pizza? I got it. What else do you deliver? Well, you deliver an area where families can come together and spend time together. Okay. What else can you offer? Okay. Well, in that family dynamic, I can actually create an environment where family not only comes together for a meal, but we can engage and talk when you think about your restaurant as doing that. Mm.
Yeah. All right, let's talk a little bit about what we just saw. Let me give you some back story to this is the way I understand it. So Mini Coopers, trying to make their introduction to the U. S. Market and very quickly they discover that they are being compared to cars like civics and Ford Fiestas. So in that relation, right, your your brain is trying to figure out is a mini cooper a good car? Should I go buy a mini Cooper? It's looking for How do I compare a Mini Cooper to what? So a lot of people are comparing Mini Coopers to Ford. Like I said, Ford Fiesta, maybe a VW Beetle, these smaller cars And in that theme, all a mini Cooper looks like is maybe it's a cool looking car, but it's way overpriced. It's a very overpriced for fiesta, so in that case, sales are not going to go very well. So what do they do? They start in 2010 to campaign and actually won an Emmy Award for this campaign. So it's a big deal that what they did was they said, no, no, no. They try to reframe their point of comparison said, Don't frame us against a Fiesta. Frame us against a Porsche. So they create this big ad campaign, and they basically challenge Porsche to erase. Now remember, the CEO of uh Mini Cooper USA was a former executive at Porsche. And if you know anything about a Porsche versus Mini A Porsche will blow the doors off the mini no comparison. And he knows that he knows that he's smart enough to realize that. What does he do? He makes this challenge, and in that challenge, he gets a lot of press. He's trying to get a lot of people. And what does Porsche do? Porsche ignores it as they should. Like, Why in the world would I would I even, like, go on and even play to the game of Mini Cooper? So they basically ignored. They send a letter back saying, We're not doing races for publicity stunts. No, thanks. So what do they do? They actually go rent that same track right around Atlanta, Georgia. That's where Porsche USA is headquartered and they actually have the race. Porsche versus Mini Cooper and Porsche blows the doors off the mini Cooper like wins. The half mile by eight seconds or something. It was an eight second difference, right? But what they then did is after that race, they said. But for every second that the Porsche beat us, we can save you $10,000 right? So all of a sudden they recreate his value comparison right there, trying to, anyways to say that they should be compared against a Porsche. They are a lower priced Porsche than a higher price for Fiesta, and they want they want A. Like I said, they want an effi on that. But that's the power of refraining and thinking about How do you want to be perceived in the marketplace? And how do you How do you refrain yourself to maintain the advantage, I guess, of being seen as a value. And when you can do that, when you frame, reframe yourself against a higher price competitor or something higher up price in another different market. In fact, you now have the ability to raise your prices without being seen as somebody who's raising their prices. You're still giving great value. It's all about comparisons. That's awesome. You're listening. What's going on here? I got a little audio issue. Oh, no, I can hear you. Fine. Okay, good. So you're listening to Will Leach. He's the author of marketing Mind States, and he's also CEO of mine State Group. Well, you got a fan that just wanted to say hi. So LinkedIn user Hello? LinkedIn, user. Thanks for joining us. Go raise your prices. So when we were talking about setting the anchor, your comment here is he who owns anchor sets, all price and the value perception just like you showed us. That's exactly right. I I tell my clients all the time. A lot of my clients sell products inside of grocery stores or some sort of a shelf. And I tell them all the time He who owns the anchor owns value. He who owns Anchor owns value the number one most important piece of real estate. If you're trying to raise your prices or if you are trying to, you know, to even communicate your value proposition, it's not where you stand on the shelf. It is the first thing that somebody who looks at before they get to your shelf where they set that anchor. It's the roulette wheel. If you can control the roulette wheel and what number they see. That is the point where people will compare your price to that. So I tell them all the time. Whatever you can do to be the very first price, or to control the very first price possible, that's what you want to do. So, for example, let's say, if you had a, um, you had a product product for a dollar and you wanted to raise that product to a dollar 50. The best thing you can do is show somebody a product for a similar product for $3. And now all of a sudden, and if it's similar to yours now, your dollar 50 product looks in relation to that anchor looks like a great deal. So that first number that people see on the roulette wheel that first number of people see and compare you to is the anchor. He who controls the anchor controls value perceptions. So it's not about creating more value by saying here all the great benefits I have before I can raise my price. You just got to control what they compare you to and do it again and again and again until it's locked and loaded in their brain
Yeah, you know, when I have a lot of conversations with business owners and my challenge is, I have to change their perception of what their solution is to over to what the real solution would be for them. And it's hard because they've and basically brainwashed by people who call them all the time and say, Hey, I can I don't know anything about your business But I can get you up to the top of a search whether that's the best thing for them or not. My challenge is how do I get their mind up off that over to the real solution of a holistic system that would be evergreen and more valuable instead of a temporary tactic? So how do we do that? We'll Yep, towards the end of this conversation, I'm gonna tell you exactly how to do it. But it all starts about this idea of exactly. Don't leave your anchor to chance. Let's talk about that anchor, and if people see you as, oh, I build websites, that's a very different anchor than no. I create marketing systems that allow you to continuously grow and scale your company and what we got to be careful about is that if you're not telling your customers what to anchor against, they will anchor to something. In this case, it could be one of your competitors saying that our ally online Yeah, they build websites. I can do it for half the cost. That is a very different anchor. So you need to control that anchor. Do not leave your anchor to chance. Um, because again it influences everything. Let me give you another example of an anchor. Um, And why, um, if you don't think about how this stuff works for your business, how it can influence so again, Another famous experiment by Daniel Kahneman and Amos Tversky. And what he did was he brought a bunch of people into a room and he had people spin a roulette wheel. But individually spinning roulette will. So But the roulette will was rigged. And what happened was it was rigged to it was always set to reach the number 10 or the number 65. It was one of those two numbers. It was always gonna be rigged to hit 16, 65 or number 10. So he had people spin the roulette wheel. It hit one of those two things. They went away. They walked into another room. In the other room, they were asked one question. They said, How many countries are in Africa now? A lot of people don't know much about Africa, and so they had to take a guess. And as you can imagine, where I'm going with this, those people that spun the roulette wheel and that they were given the number 10 is the, you know, as the number that you know, the ball landed on. Those people tended to have around, you know, maybe 20 to 25 countries. About 25 countries are in Africa, same types of people, those people that actually where the ball landed on 65 they tended to say, Oh, there's probably 50 to 55 countries in Africa. See how that one anchor point that one little ball, that one number created a sense of organization for your mind to then create a guess, A guesstimate. That's why you don't leave your anchors to chance because you don't want a certain anchor a number or something that someone else says to create the perception of what you are near does that make sense. Yeah, it happens to the best of us. So I always thought to myself, My gosh, these anchors matter. So you know, I remember a very simple way of thinking about your value is this? I used to use this, and I think I was wrong back at years ago. Somebody said, Well, what's the value equation? Never heard the value equation. What's the value equation? And I said simply, it means that it is what you get divided by what you pay for. And if that is a good ratio, you have great value. That's not true. It is what you get divided by what you pay for in relation to something else and that in relation to something else, is oftentimes non conscious. But you better own that in relation to something else, because without that, there's no understanding of what value could be, and therefore you could be seen as very expensive. If you're seen as a guy who just creates websites or a great value, if I build a recurring revenue system for your company so you can scale totally different perceptions, totally different value equation
Absolutely. So let me just before we even start. How is your day going today, Steve? You wouldn't believe it, good or bad? Great. Why? Because today is Livestream Day. So I'm having these great conversations where I get to have a conversation like this one. But I learned so much on Thursday. I was just thinking about it. So actually, you know, you're going to tell me some stuff and I'm gonna get some energy from it because there's education involved. I love that. So it's a good day. How would you rate today versus your very best day in your life, like your very best day? Think about the day that you're like this was the very best day of my life. Well, we're not there. I mean, that was like, I don't know. There was like, something that happened that was unexpected, that I maybe had hoped for. And then there we go. We we acquired some aspirational experience that didn't expect That's right. And that is my point. Guys, everything, every evaluation you make, whether it's how are you feeling whether it's what cereal is a good value every time you rate anything, it's actually always always, always relational. It is in relation to something else. So when you said Steve, you said Today is a great day that is in relation to what something else is not so great. That's what made it great. There is no black, the color black without the color white. There is no good versus It's contrary, bad. Your brain craves relations and understanding. Relations were it craves meaning. And how do you create meaning? It's in relation to something else. So here's another example about how the brain can be influenced by a point of comparison. Famous study from Daniel Kahneman years ago. But basically we do is he set up a scenario where you ask people, um, whether or not they would take on a surgery in two different scenarios. One scenario was like, Hey, 90% of people survived this this surgery. Same exact surgery. Other people were told, Hey, 10% people die from this surgery. Same percentage, you know, mortality, right? But just by the framing of what you compare it to impacts dramatically the number of people who said I'm not going to take the surgery if I have a 10% chance of surgery. I don't want to have anything to do with it. Where other people are told you have a 97 90% chance of success. You're gonna be fine with the surgery. More people like, Yeah, I'll take the surgery So your mind creates at this point of comparison. And in this point of comparison, I want you to start thinking about being diligent in your point of comparisons because the mind your customers' minds are comparing you to something anyways, So why wouldn't you take ownership of that? So I'll bring it to to you in another way, Right? So think about Covid covid 19 deaths, and I ran out just before I did this. So I'm not going to exact figures, right? But think about how framing makes people feel whether this is a big deal or not such a big deal. So covid right around now in the US, we've lost 400,000 people to covid. That is a number, and that is a staggering number. 400,000 people have lost their lives according to a couple of different data sources to covet. Now, if you were to say how big a deal is covid Well, what is 400,000 members in relation to? What if you were to relate Covid too, you know, in 1911 on 9 11, we lost almost 3000 Americans on that day. In that case, versus 9 11, this is 133 9 eleven's. That is a very differently emotionally respond, like 133 9 Elevens versus you. Take that same 800,000 figure And you say, Well, there are 331 million people in America, and that only equals like 0.1% of the population. How big a deal is covid. See what I mean? The same number as how you frame it or what you anchor it on has very different meaning to different people. And that's why I think you see so much kind of, um, um, so much indifference on some people about code and other people are like we have to survive because if you think about 300 or 133 9 11, that's a very different emotional response. Then it's 110.1% of the population. That's the power of framing and your mind does it all the time. It's always trying to figure out meaning, and we create meaning through what we anchor against.