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 before. 2. Later, reduce your discount. Source: The Tao of Pricing. See also: 47 Ways to Raise Prices …Without Losing Customers. #pricing psychology #pricing strategy #entrepreneurs