The Psychology of Price: How to use price to increase demand, profit and customer satisfaction

Customers will find it easier to compare your product with a competitor than to evaluate it on its own merits.

Whichever products we most closely associate a new purchase with are the ones we are likely to use as a price guideline.

called diminishing marginal utility. This essentially means that the taste difference between the best and second-best wine is smaller than the difference between the second and third.

you can get a shortcut to consumer acceptance by positioning your product as a better or cheaper

customers are likely to compare them directly instead of changing their subconscious evaluation of the true value of the product.

understand and take control of the expectations of the other party; give them a choice between several options on your terms, not theirs; and make the payment distant – emotionally or in time – but make the benefits close, visible and highly salient.

what factors do they value which you can use to customise and differentiate your product range?

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

People will compare the price of your product to the range of prices for comparable options.