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PRICING “TIP OF THE WEEK”…
Purchasing agents may lie about your competitors’ prices. The wise marketer agrees to meet competitor prices ONLY if the purchasing agent puts them in writing. Source: The Tao of Pricing. #pricingstrategy #pricingpsychology #entrepreneurs
Getting a higher price
When do consumers consider $895 for a refrigerator a better price than $825? If the $895 is discounted from $995. Source: The Tao of Pricing. See also: 47 Ways to Raise Prices …Without Losing Customers. #pricing psychology #pricing #entrepreneurs
Buyers Hate Price Increases
Buyers hate price increases more than they love discounts (Prospect Theory). Therefore don’t raise your prices(!) A marketer with a high enough “basic” price can merely reduce the amount of the offered discount. This can be a 2-step process. 1. Raise your basic price, but increase your discount so your customers pay the same as…