Clever pricing is a low profit margin on your “basic” model… but large profit margins on highly desired, add-on features. Source: The Tao of Pricing. See also: Pricing Psychology Report. #pricing #entrepreneurs
Tag Archives: Tao of 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
Know your customers
Know your customers. If a man known for his cheapness buys from you … raise your prices immediately. (Source: The Tao of Pricing) #pricing #pricingpsychology