Pricing by Extremes
Why?
More sales and more profit.
How?
Have only very low and very high price versions of the product or service. For instance, a book even by a known author as an ebook would cost under $5 (preferably $1), while the deluxe hardbound printed edition would be $30-$90 or more.
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Use Price Comparison to Your Advantage
Why?
If you are selling products or services that the buyers can see the prices of (books for instance) easily, you need to have the right juxtaposition to make them seem a great buy.
How?
Instead (or in addition) to showing them in the usual places (a book fair to continue the example above,) go to where your target audience is but where your products seem much cheaper compared to what is already exhibited there. So take the books that might appeal to wealthy people and show them at the yacht expo or luxury car exhibition. Compared to the prices of yachts and cars, even the most expensive book at full price seems like dirt cheap, and if you match the offerings to the target audience, you’ll get much more sales (then at a book fair.) Both people who can and might buy yachts, and those who can’t and just come to look, will have both a need to spend (especially if they can’t buy) and it’ll be a cheap price to pay for them to feel good.
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Prices Revealed
Why?
Some insight into the “hidden” prices of some companies.
How?
A website where users can share anonymously their experience with prices of services, products, and companies that do not make their prices public.
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Cost Structures of Different Businesses
Why?
Get to know the business field you are interested in.
How?
Show the typical cost structures of businesses in different fields, and case studies of failed and successful companies and why they failed or succeed.
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Waiter Based Pricing
Why?
The waiter gets a commission for every item sold. The client gets the experience they like and are willing to pay for.
How?
A restaurant that doesn’t have a fixed price list for its menu. Each waiter has their own price list, and it’s their job to sell the experience, themselves and their prices to the clients – bring them in and make them return. The restaurant helps with the marketing, but prospecting and sales are up to the waiter.
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