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
Tag Archives: Entrepreneurs
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”
Relationship Marketers & Pricing
The relationship marketer desires information on customers to better market them in the future. One way to do this: Set prices high and offer discounts for providing more information. Source: The Tao of Pricing See also: 47 Ways to Raise Prices …Without Losing Customers. #pricing psychology #pricing strategy #entrepreneurs
Free Samples
Free samples of compelling products build life-long customers. Examples: Food in grocery stores, free chapters of books, free first novels in a series, or free samples of almost anything used frequently. However… this technique is so powerful society must beware when the product is addictive, e.g., cigarettes and hard drugs. Source: The Tao of Pricing.Continue reading “Free Samples”
Pricing for Business Prospects
If business prospects can accurately measure the the sales your product delivers, give discounts or even a free sample so they’ll try you. Example: A direct-response advertiser will buy frequent ads IF the ads make them money. Show them — with a free ad if necessary — your blog/publication/website will do so. Source: The TaoContinue reading “Pricing for Business Prospects”
Wondrous Rebates
A rebate is a wondrous thing. It lets you discount your price ONLY to your most price-sensitive customers. How? Because only customers worried about the price will take the trouble to redeem one. Source: The Tao of Pricing. See also: 47 Ways to Raise Prices …Without Losing Customers. #pricingpsychology #pricing #entrepreneurs
Negotiating Prices
If you must negotiate prices… consider only price requests accompanied by a signed order for the product at that price. Source: The Tao of Pricing See also: Pricing Psychology Report. #pricing strategy #entrepreneurs
Beware Wily Negotiators
Beware the wily negotiator. Customers who ask for discounts because they don’t need one of your product’s features, should get their discount ONLY for your product WITHOUT that feature. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing strategy #entrepreneurs
Something is better than nothing
Receiving something is always more profitable than receiving nothing. Consider this when setting your price on hard-to-sell inventory, remnant airtime or space, or hours you’d otherwise spend contemplating your navel. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing strategy #entrepreneurs