Competing With Low Prices

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.

Small Differences that Look Big

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”

Should high-quality brands use “99” in their prices?

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?”

Increasing Prices Through Sales Negotiations

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”

Easy Price Increases

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”

Should you “fire” some customers?

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?”

Rewards for Salespeople

Salespeople who are rewarded for the revenues they bring in will always try to discount prices. It’s an easier sell. If you want them to sell value and premium quality, reward them on the net, not the gross. Source: The Tao of Pricing. #pricingpsychology #pricingstrategy #salescompensation #entrepreneurs

Move your price up to a barrier

By moving your price from, say, $95 to $99 (just under the $100 barrier), you’ve added $4 of pure profit with a good chance of not losing a single customer. So says new book 47 Ways to Raise Prices …Without Losing Customers! by Dr. Marlene Jensen. #pricing #raiseprices #entrepreneurship

Product Changes That Allow Price Increases

Need to raise prices? Consider upgrading the look of your website and/or store. Research shows customers are willing to pay more when the look of the establishment is higher end. Details on this and eight other product-change tactics can be found in new book: 47 Ways to Raise Prices …without losing customers. #raiseprices #increaseprofits #pricingpsychologyContinue reading “Product Changes That Allow Price Increases”