The Psychology of Price: How to use price to increase demand, profit and customer satisfaction
amazon.com
The Psychology of Price: How to use price to increase demand, profit and customer satisfaction
If you can introduce these ‘decoys’ into the buying process, you will make your product look subconsciously better than it would without the decoys.
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.
The more unusual your product is, the more you should aim for a premium price segment;
customers are likely to compare them directly instead of changing their subconscious evaluation of the true value of the product.
Work out on which value dimensions (or benefits) your offering is better than theirs, and on which dimensions theirs is better.
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
people put much less value on money in the future than in the present.
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.
every benefit is based on two fundamental emotional drives, pain and pleasure, and two fundamental material benefits, time and money