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
Author Archives: Marlene Jensen
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”
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
In Bed with your Competitors
You cannot get in bed with your competitors and agree on a 10% price increase. (Unless you wish to be jailed.) But you can announce a 10% price increase yourself. If your competitors don’t join you, you can always rescind it. Source: The Tao of Pricing. See also: 47 Ways to Raise Prices …Without LosingContinue reading “In Bed with your Competitors”
Wise Marketers
Wise marketers often let competitors know their intentions. A “we’ll meet any price” policy may convince your competitors of the stupidity of discounting their prices below yours. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing #entrepreneurs
Desperate Competitors
A desperate competitor is likely to discount heavily to get SOME of its customers. Rather than meet ruinous prices — be a goodwill ambassador to your competitor’s customers. Let them ALL know about the discounts being given just to some … so they can also benefit. Those customers will thank you for looking out forContinue reading “Desperate Competitors”
Toot Your Horn (part 2)
If there’s a reason why you can price lower than your competitors — that is not related to cheaper quality — make sure your customers know about it. Else they will question your products’ quality. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing #entrepreneurs
Toot Your Horn to Prevent Price Wars
If there’s a reason you can maintain a low price easier than your competitors, make sure they know about it. It could prevent their starting a price war. Example: All the PR Walmart sought & received at launch on Walmart’s innovative and cost-saving warehousing … was really just a warning to its competitors. It said,Continue reading “Toot Your Horn to Prevent Price Wars”