Clever are the discounts that commit a customer to you for further sales. Examples: Discounted razors, when you sell razor blades. Discounted ink jet printers, when you sell ink cartridges. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing #entrepreneurs
Author Archives: Marlene Jensen
The more a customer buys…
The more a customer buys of your product, the more price sensitive the customer is. Large purchasers are why volume discounts were invented. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing #entrepreneurship
Clever Pricing
Clever pricing is a low profit margin on your “basic” model… but large profit margins on highly desired, add-on features. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing #entrepreneurs
Everybody loves a bargain
Everybody loves a bargain. If you list the “full” cost of all the benefits a purchaser will get and contrast it with the discounted rate s/he is paying… a fortuitous sale is more likely to be yours. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing #entrepreneurship
What should you bundle?
How does a marketer find partners for bundling? A review of store scanner data can reveal which items are consistently purchased together. Source: The Tao of Pricing. See also: Pricing Psychology Report. #PricingStrategy
Fungible Products & Pricing
Fungible products sell cheap. (Fungible products have little difference from competitors, e.g. two brands of nails or of flour). To escape this classification (which buyers are applying to more and more products), consider bundling your product with another. Examples: A tea pot with an assortment of teas, a book with a short video course forContinue reading “Fungible Products & Pricing”
Prestige Brand Names
Prestige brand names matter less on products not visible to others. Examples: Underwear and toothpaste. (Source: The Tao of Pricing) #PricingPsychology #pricing #entrepreneurship
New product pricing mistakes
When launching a new product, always test a price much higher than you think the market will bear. An axiom: You always OVER estimate how many buyers you can get, but always UNDER estimate how much each will pay. (Source: The Tao of Pricing) #PricingPsychology #pricing #entrepreneurs
Employee purchases & pricing
Products paid for by employees — with company money — can be priced higher. …unless they are bought by purchasing agents. Source: The Tao of Pricing. #pricingpsychology #pricing #entrepreneur
Small Market Shares & Pricing
The smaller your market share, the more buyers will judge your quality by your price. (Source: The Tao of Pricing) #PricingPsychology #pricing #entrepreneurs