The Psychology of Price: How to use price to increase demand, profit and customer satisfaction
amazon.com
The Psychology of Price: How to use price to increase demand, profit and customer satisfaction
Choose your anchor price to be substantially higher than your standard price.
pick one main benefit area where you can overwhelmingly exceed the quality of the competition, and aim for people who care a lot about that benefit.
what factors do they value which you can use to customise and differentiate your product range?
partner whose target market fits their product. Your goal is to help the partner turn their product from a commodity into a unique product or experience.
If you can introduce these ‘decoys’ into the buying process, you will make your product look subconsciously better than it would without the decoys.
The more unusual your product is, the more you should aim for a premium price segment;
“The point is, the positioning of the product makes a huge difference to how much people will pay for it.
Offer a value-pricing option which ties your rewards to the number of new customers they win, or the productivity saving they make, or some other measure. This will nearly always work out much more
go in confidently with your price, making no apologies for it. If the customer asks for a discount, you only offer it to them in exchange for some reduction in the benefits of the service. The reduction in benefit may not be exactly proportional to the reduction in price