The Goldilocks Effect is when you choose the price that's not too hot, not too cold.
It's used pretty widely in one area of recruitment… but applying it to your perm business could be a game-changer.
When a client wants a £400 a day contractor, we know it's a good idea to show them a £380 option, a £410 option and a £450 option for context.
In other words, we make sure they know what they're missing by showing them the more expensive contractor.
And we let them know that, yes, there are cheaper options… but they won't get everything they were looking for.
But when we pitch for a perm role, we go in with one price.
No here's what you could have won teaser. No context of what cheap would mean. Just one price. Which means the client has to go out and find their own context. By talking to your competitors.
No wonder it’s a struggle to get clients to commit exclusively - we're pushing them into the arms of other recruiters!
Imagine if hiring managers focused on you, rather than comparing you to your competitors.
No more, “That’s great, but can you do it at 15%?”. No more, “I’ll just talk to another four recruiters and come back to you”. A lot more of leaving a pitch knowing you’ve secured a client who values what you do.
If you’d like a pricing strategy that feels just right for you and your clients, simply reply to this email, and we’ll talk.
Jon
P.S. The Goldilocks Effect really does help you live happily ever after with your clients. They get to choose the service that’s right for them, from a list that is designed by you.
So if you’d like a pricing strategy that feels just right for you and your clients, simply reply to this email, and we’ll talk.