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”

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 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”

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”