Are you increasing sales with your price cut? Or… Just increasing your customers’ inventory? Advancing their expensive purchases by a month or two? Price cuts that don’t increase total sales can be as worthless as the promises of a known liar. Source: The Tao of Pricing.
Rare is the buyer who buys “down” in quality. A Ford discount won’t attract a Mercedes buyer. Research has found that discounts primarily pull buyers from products of the same — or lower — quality. Source: The Tao of Pricing.
The wise marketer considers whether coupon distribution should be restricted to competitors’ customers. Research shows only 14% of coupon redemptions come from new buyers. Worse — only 50% come from your most loyal customers. Source: The Tao of Pricing.
It takes a rich company (or a one-man service provider) to compete through lower prices. And there’s the danger of another company matching your price. A wise owner seeks a low-cost, efficient operation, but… most products and services will do better if price is not their only advantage. Source: The Tao of Pricing.
If your product is inexpensive, convenience in finding it will be more important than discounting it a few cents. Therefore — don’t discount, but spend the money to get wider distribution. Source: The Tao of Pricing. #pricing #pricing strategy #pricingpsychology #entrepreneurship
Beware small price differences which buyers perceive as big. $9.99 will pull many more buyers than $10 — with two possible exceptions: Luxury products and products without an alternative that is acceptable to the buyer. Companies without viable competitors have seen no drop-off in orders after raising a price from $19.95 to $21.95. Source: TheContinue reading “Small Differences that Look Big”
Maybe not, says new book 47 Ways to Raise Prices …Without Losing Customers! If other high quality brands in your market use 99 cents or 99 dollars in their prices — you can get away with it too. But you should see an increase in quality perception — and maybe even in sales — byContinue reading “Should high-quality brands use “99” in their prices?”
Need to raise prices? If your business uses salespeople, consider outsmarting price bargainers who claim they should pay less because part of your product/service isn’t valuable to them. Agree to accept less only if they agree to the product/service without the disputed feature. Even if it would be hard (or almost impossible) to remove thatContinue reading “Increasing Prices Through Sales Negotiations”
Need to raise your prices? Consider raising only your “hidden” prices. Most companies have items that are carefully price-shopped by their customers, but also items (add-ons or exclusives) where customers are not as price sensitive. Details on this and 11 other “easy” tactics that allow you to raise prices with no changes to your products/servicesContinue reading “Easy Price Increases”
By not spending money to promote to customers who are not profitable, your average profit per order will rise. Seems “common sense,” but if you look at your marketing you’ll see you’re wasting a lot of money! Plus, every cent you save in those promotion costs goes straight to your bottom line. So explains newContinue reading “Should you “fire” some customers?”