Tip Of The Day - 9/13/05 - $5 Milk Shake

[Sean Adams]

I was reading a marketing book last night and there was a section about price perception. I am not saying I agree or disagree with the author, but he believes that the higher you price a service the higher regard the potential client will have for that service. He used the example of Pulp Fiction...

When John Travolta and Uma Thurman go to the 1950's style diner they order food - Travolta orders a burger and vanilla coke and Uma orders a "$5 milk shake". Travolta is shocked that it costs that much - he even asks the waiter if "bourbon is added to that shake"...

When the shake arrives travolta asks if he can have a sip of the shake. The author says that if it were a $2 shake travolta wouldn't be interested, but because it costs so much he was intrigued and wanted to taste it. He says that high pricing not only intrigues the prospect, but it will tempt them as well.