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

If you sell by mail order, you may find it worthwhile to offer customers your product on a sale-or-return basis.

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.

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

If you can introduce these ‘decoys’ into the buying process, you will make your product look subconsciously better than it would without the decoys.

some consumers will pay up to 50% more for a product if they can pay for it later

we don’t like to pick extreme options – we like compromise and balance, because it feels that way we are less likely to make a mistake.

make sure that your product can’t be directly compared with that of a competitor. And bundling is one of the best ways to do this.

If you give out small objects like mugs or chocolate bars to individuals and ask them to look at and hold the objects for a short time, their valuation of those objects will increase.

If you sell to consumers, any way you can get them to commit to buying a high volume without having to pay for it up front is likely to increase volumes and reduce price sensitivity.