Monday Memo
A Byte of Knowledge
We haven't talked about Midjourney's "describe"feature yet...
But it allows you to reverse engineer any image into killer AI art prompts.
You simply upload any image into MidJourney...
And it'll spit out four detailed descriptions of what it sees.
We're talking freakishly accurate descriptions.
Like specific, little-known art styles...
The perfect perspective...
It might even guess exactly where the picture was taken.
But here's where it gets great...
You can take any of those descriptions...
And plug 'em right back into MidJourney as ready-made, ultra-specific prompts...
For the AI art you want without all the guesswork and endless tweaking.
And the best part?
It's dead simple to use.
Just type /describe in a Discord chat with the MidJourney bot...
Upload your picture...
And watch the AI work its magic.
In seconds, you'll have 4 killer prompts to play with like this:
🚀 These 27 A.I. “Growth Codes” Are A Shortcut to AI Advertising Domination
"They’re able to get REALLY damn good copy… that requires minimal editing… right out of the gate. It's pretty amazing”
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Something to Ponder
Are you positioned for greatness?
It's a simple question, but the answer could change the trajectory of your entire career.
Because here's the hard truth...
Some roles drive a business forward...
They directly impact the bottom line...
They're the needle-movers, the game-changers, the revenue drivers.
But others?
Well, they might be important to keep the lights on...
But they're not the ones steering the ship.
They're not the ones making the bold moves that can make or break a company.
Take the world of direct response marketing, for example...
Few roles have as much impact as a copywriter.
With a single headline, a brilliant offer, or a perfectly positioned promise...
A copywriter can take a campaign from flatlining to record-breaking.
One great sales letter can make a business.
So let us ask you this...
Do you know which roles are the true needle-movers in your business?
The ones that have the power to directly impact the bottom line and drive the company forward?
And more importantly...
Are you in one of those roles right now?
We Asked – AI Answered
Our Question:
"I want you to deep dive into three different, effective pricing strategies I can use to increase my conversion rates and boost sales. Explain what each is, why it works, and give me an example."
ChatGPT's Answer:
1) Decoy Pricing:
What it is: Decoy pricing involves offering three product options: a low-priced option, a high-priced option, and a middle-priced option (the decoy).
The decoy is priced closer to the high-priced option and is usually less attractive than the high-priced option, making the high-priced option seem like a better value.
Why it works:
- Decoy pricing makes use of the "asymmetric dominance effect," a cognitive bias where people tend to change their preference between two options when a third, less attractive option is introduced.
- By adding a decoy option, businesses can steer customers towards the higher-priced option, as it seems like a better deal compared to the decoy.
- This strategy simplifies the decision-making process for customers, as they can easily eliminate the decoy option and feel more confident choosing the high-priced option.
Example: The Economist famously used decoy pricing for their subscription packages. They offered a web-only subscription for $59, a print-only subscription for $125, and a print and web subscription (the decoy) for $125.
The decoy option made the print-only subscription seem unnecessary, leading more customers to choose the combined print and web subscription, which was the Economist's most profitable offering.
2) Price Skimming Strategy
What it is: Price skimming is a pricing strategy where a business sets a high initial price for a new product or service, targeting early adopters and price-insensitive customers.
As the product moves through its lifecycle, the price is gradually lowered to attract more price-sensitive customers.
Why it works:
- Price skimming allows businesses to capitalize on the novelty and exclusivity of a new product. Early adopters and enthusiasts are often willing to pay a premium to be the first to own or experience the product.
- This strategy helps businesses recover their research and development (R&D) costs quickly, as the high initial price generates more revenue per unit sold.
- Skimming can also create a perception of high quality and prestige, as customers often associate higher prices with superior value.
- As the price is lowered over time, businesses can tap into new customer segments and maintain sales volume as the product moves through its lifecycle.
Examples:
- Tesla used price skimming when introducing their electric vehicles. The Tesla Roadster, their first model, was priced at over $100,000, targeting affluent early adopters passionate about innovative technology and environmental sustainability.
As Tesla introduced new models like the Model S and Model 3, they gradually lowered prices to attract a wider customer base.
When to use Price Skimming:
- When introducing a highly innovative or unique product with few competitors.
- When the product has a high perceived value or is considered a luxury item.
- When the business has a strong brand reputation and loyal customer base.
- When the product has a short lifecycle, and the business needs to recover R&D costs quickly.
Potential drawbacks:
- High initial prices may limit the product's accessibility and market penetration.
- Competitors may introduce similar products at lower prices, capturing price-sensitive customers.
- If the price is lowered too quickly, early adopters may feel cheated, damaging brand loyalty.
3) Anchor Pricing:
What it is: Anchor pricing involves displaying a higher-priced item next to the product you want to sell. This "anchor" price serves as a reference point, making the actual price of the target product seem more reasonable or even cheap in comparison.
Why it works:
- Anchor pricing exploits the human tendency to rely heavily on the first piece of information offered (the "anchor") when making decisions or estimates. By presenting a higher price point first, the actual price of the product seems more attractive.
- It shifts the customer's perception of value, making them believe they are getting a good deal when they purchase the target product.
- This strategy is particularly effective when the anchor price is for a similar product, as it helps establish the value proposition of the target product.
Example: Williams-Sonoma, a high-end kitchenware retailer, once offered a bread maker priced at $275. Sales were slow until they introduced a larger model priced at $429.
Although they didn't sell many of the larger model, sales of the $275 bread maker nearly doubled. The anchor price of $429 made the $275 price point seem like a great deal in comparison.
GOT 15 SECONDS?
Thanks for reading the Monday Memo.
Until next time!
The AI Marketers
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