Confessions of the Pricing Man: How Price Affects Everything

Gillette practices premium pricing of the best kind: creating value through innovation, communicating that value, and then extracting it with premium price s.

“he kept pushing it. And now those who use it buy it at a huge price—can’t live without it. When their costs go up a bit, they put the prices up, and no one cancels.”12 Wouldn’t each company love to have such pricing power?

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

The first digit in a price has the strongest influence on perception; that is, a price of $9.99 comes across as $9 plus something rather than $10.

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

word. When a company tries to figure out the price it can achieve, only the subjective (perceived) value of the customer matters.

I summarize my insights into price war s very simply: there are smart industries and there are self-destructive industries. What is the difference? The smart ones avoid price wars, and the self-destructive ones get stuck in them. The smart ones are profitable; the self-destructive ones incur losses or destroy profits. The problem is that it only ta

“We have a policy of keeping prices stable to protect our brand and to prevent a drop in prices for used cars. When demand goes down, we reduce production volume but don’t lower our prices.”

A customer loyalty concept: to turn the first-time buyers into repeat customers, who have the highest lifetime value.