Mark J. Podolsky (the Land Geek) uses a Planet Money anecdote about Spirit Airlines to illustrate pricing psychology. He describes Spirit as a "bus in the sky" that charges for virtually everything yet attracts buyers because of very low headline fares (example: a $400 typical fare vs. Spirit's $99). He argues sellers should price properties at the extremes to draw buyers, using retail metaphors (Dollar General vs. Target/Walmart) and the "best fruit on the limbs" metaphor. The video ends with calls-to-action to visit thelandgeek.com and download free resources (Passive Income Blueprint, ebook on avoiding land-buying mistakes) and to subscribe to the Land Geek podcast.
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Hey, it's Mark Podolski, the land Geek from thelandgeek.com let's have another virtual cup of coffee together. I'm switching coffee cups on you this morning. This is a cup my wife bought me a while ago when we were in New York. So I was just listening to an interesting podcast on Planet Money, and they were talking about the fastest growing airline, United States. Guess what it is. Have you ever heard of Spirit Airlines? Well, I've never flown Spirit, but basically they're like a big bus in the sky. The seats don't recline. There are billboards everywhere. They charge for everything. You want to put your baggage in the overhead bin, they charge for it. Checking bags, they charge for it. Oversized bags, they charge for it. They charge for the water, they charge for the peanuts, they charge for everything. But they're the lowest of the low, right? What might charge, what the average airline will charge you for a $400 trip for Spirit Airlines charges $99 for. So if you don't check bags, you don't get charged for. What you don't use is basically their philosophy. They interviewed the CEO and he's like, we're like the Dollar General Store. He's like, you want to shop at Target? Or he's like, we're not even like Walmart. And we talked about this as far as how it relates to pricing your properties. And you want to be again, on the extremes. People hate Spirit. They just. They despise it. And yet they keep buying. Their flights are always. This is what economists call our stated intentions and our revealed intentions. It turns out people really do love spending money, even though they might hate themselves for it afterwards. They can't help themselves when the fares are so low. So when you're pricing your properties, I want you to keep this in mind. Be on the edges. Be on the extreme. I heard a long time ago that the best fruit is always out on the limbs of the tree. Yeah, they can break, but that's where it is. So be on the edges. If you want more tips, tricks, techniques on how to make an incredible income actively or passively buying and selling raw land, go to www.thelandgeek.com. download for free the Passive Income Blueprint. Get the ebook how to Avoid the three Fatal Land Buying Mistakes. And of course, get the Land Geek podcast on itunes, delivered each week into your email inbox. This is Mark Podolski, the Land Geek. I'll see you next time.
