The anchor effect created by the $900 model drew the buyer’s willingness to pay upward. Even if the store never sells even one $900 suitcase, it makes sense to keep it in the assortment, purely because of the anchor effect it creates.

on “price” instead of “value.”

Pricing power determines whether a supplier can achieve his or her desired price s. It also determines the degree to which a brand can earn a premium price .

When you raise your price, you increase the value the consumer receives without changing anything else about your product. Wait, what? Yes.