“Good pricing has three prerequisites: create value, quantify value, and communicate value,” I said in summary. “That is when you get the price you deserve, the price you need for a profitable business. And, last but not least, avoid price war s.”

The problem is that it only takes one self-destructive competitor to render an entire industry self-destructive. That’s why it is better to have smart competitors.

They say that they find it easy to cut prices if they set them too high, but very difficult to raise them if they set them too low. And they think that this is enough for a pricing policy . It does not seem to have occurred to them that the wrong price impairs market and market share . Yet these people enjoy the reputation of most successful

Premium pricing means offering higher value and demanding a premium price in return.

rare examples of government intervention which actually allows pricing mechanisms in markets to function more freely.

My own findings show that it makes no sense to set prices at $9.90 or $9.95. If you want to remain below a price threshold, then you should set your price as close to the threshold as possible, which means $9.99 in this case.

Create value: The quality of materials, performance, and design all drive the perceived value of customers. This is also where innovation comes into play. Communicate value: This is how you influence customers’ perception. It includes how you describe the product, your selling proposition, and last but not least the brand . Value communication also

The impression of consumers that a product is available only in limited supply can create a stronger urge to buy.

The less a buyer knows objectively about the quality of the products and prices in an assortment, the stronger the pull of the “magic of the middle” will be.