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

differentiate the products, look at the values or benefits that the product gives to your customers, and design product versions that provide different amounts of those benefits.

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.

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

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.

the endowment effect suggests that you should consider encapsulating the service in a physical, tangible version. Customers who can ‘hold the service in their hand’ are more likely to think it is legitimate to pay for it than those for whom it is completely intangible.

Work out on which value dimensions (or benefits) your offering is better than theirs, and on which dimensions theirs is better.

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

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.