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
Author Archives: Marlene Jensen
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
Luxury is in the Eye of the Beholder
Even the “monetarily challenged” can enjoy splurging or treating themselves to a relatively expensive candy bar, shampoo, or aftershave. (Source: The Tao of Pricing) #PricingPsychology
Using Price to Judge Quality
When buying products they can’t test, from companies they don’t know, customers frequently rely on price to judge the quality. (Source: The Tao of Pricing) #PricingPsychology #PricingStrategy
People will pay extra
People will pay extra for truly new products. It’s a reward for creation, that lasts until competitors happen. Don’t miss this chance to cover your R&D expenses. (Source: The Tao of Pricing) #PricingPsychology
Pricing to Monks vs. Emperors
Monks and emperors will pay different prices for the same cloth. Don’t disappoint them. Failing to charge different prices can worry your buyers unnecessarily that your product is inappropriate for their station in life. (Source: The Tao of Pricing) #pricingpsychology #pricingstrategy