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

attractive to people who are not owners of the company. How can the HR director, or the chief financial officer, or the head of sales, improve their career prospects by buying from you?

when seen against the price of their more expensive product, the quality attributes will become relatively important and your price less so. This leaves you in a stronger negotiating position to maintain your margin:

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

first create these impressions by leveraging customers’ knowledge of existing categories, and then sustain them by being consistent each time they encounter you.

The key values of your customers are those which they will pay for. Free offers are most effective in the dimensions which customers do not value so highly.

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

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.

there is a strong pull to follow the example of other people like us.

In contrast to the free offers in the previous chapter, you should choose upsell opportunities that do match the key value dimensions of your product or service.