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PRICING “TIP OF THE WEEK”…
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 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”