You know, a price isn’t just a number. It always comes with context, a story.
The wrong story can make a good price seem bad. And vice versa.
Let’s say we want to sell some water
1. Decoy Pricing
The premium costs only a bit more than the decoy but provides much more value.
2. Location Pricing
3. Relative Pricing
Good positioning makes customers compare your product with more expensive products.
4. Social Pricing
People tend to only speak about very expensive or very cheap stuff they bought.
5. Magic of the Middle
Those who don’t know the market, or don’t care, will usually choose the middle option.
6. Bundle Pricing
Use bundling to sell more while reducing the price just a little.
7. Breakdown Pricing
Breakdown the high price into smaller units.
8. Price vs Value
Is the price the main benefit? Emphasize it. If not, emphasize something else.
9. Urgency-Based Pricing
Create scarcity by promising to raise prices.
10. The Rule of 100
If the price is lower than $100, discount in %. If it’s higher than $100, discount in $.
11. Premium vs Low-Cost
12. Penetration Pricing
Bonus: Pricing Placebo
In a study, two groups drank the same wine; half thought it was expensive, and the others thought it was cheap. The “expensive” wine people had a blast. But those who drank the “cheap” wine hated it.
