This past weekend, world-famous graffiti artists, Banksy, set up shop in Central Park (NYC) to sell 100% authentic and signed canvases for $60 a pop. Original Banksy pieces can sell for hundreds of thousands of dollars. His park stand sold a whopping eight canvasses, netting about $420.
Banksy undoubtedly pulled the stunt as a form of social commentary, but I think the charade gives great insight in a few other areas:
What Banksy teaches us about pricing strategy.
Often times companies use “Price Anchoring” to influence you to spend more. Restaurants use it all the time on menus. SAAS companies use it by varring pricing subscription options. Retailers use it when advertising sales. (I know, don’t you feel manipulated now?)
One of the first things you notice about Banksy’s display is the price tag. He is clearly advertising that his price is $60 for any painting. Having lived in New York for a few years, I can tell you that most of the merchandise you buy on the streets sells for far less than $60. Therefore people on the street are “anchored” towards the standard price of items, making the $60 for a black and white canvas seem quite high. They must decide to stop and look or keep walking within seconds, and because the price seems too high, most people walk.
When you price your product or service, think about how anchoring may play a role and how you can use it to effectively price your stuff.
What Banksy teaches us about branding.
It’s crazy to think about the difference in price people paid for an anonymous Banksy piece compared to a branded one. Some of Banksy’s works have fetched close to $2 million. I think it’s safe to say that had any of these pieces sold at a Banksy auction they would have went for tens of thousands of dollars.
That just shows you the power of branding. Banksy’s brand alone increased the value of a canvas by 10,000%. In order to sell all of his work in a matter of minutes (for tens of thousands of dollars more) all he had to do was put up a big Banksy sign I realize that was not his aim here. But he had that power.)
Are you investing in your brand as much as your product? Often times your brand is what people are buying, and what they are willing to pay more for.
What Banksy teaches us about art, society, and social justice.
I’m gonna stay out of this one. If you have any insight into what you think the social commentary is here, let us know in the comments below.
