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PRICING “TIP OF THE WEEK”…
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 asContinue reading “Buyers Hate Price Increases”
The Price Number on the Left
The price number on the left can make big sales differences from tiny price differences. Examples: $49 vs. $50 or $89 vs. $90. Test result: A service business found no price resistance moving from $40/hour to $45…. but a huge difference between $39 and $40. Source: The Tao of Pricing. See also: Pricing Psychology Report.Continue reading “The Price Number on the Left”
Beware “Financial Think” When Pricing
Beware the financial mind when it comes to pricing. Applying a percentage increase can create prices such as $924.68 — a terrible price psychologically. Also, charging cents on a product priced over $50 can make customers feel gouged. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing #entrepreneurs