OnDemand WTP Pricing Research

How to set the right pricing strategy | New Worker Magazine

Looking at the pricing strategies of successful companies large and small, something interesting emerges: Price has a tremendous impact on success. Choosing just the right price for your product can actually make the difference between failure and fortune.

Take for example, the case of the number 9. It’s at the end of every price, and that’s because studies have shown odd numbers increase sales by 27% percent. This works for two reasons: odd numbers draw attention, and it makes the overall price seem like a better deal. The difference is marginal, but the impact is huge.

It’s likely you can name at least three Starbucks in your vicinity right now. That’s not just the caffeine addiction talking — that’s an intelligent pricing strategy at work. Starbucks employs value-added pricing. They charge customers not just for the cost plus profit, they charge for the value they provide. They long ago figured out the absolute maximum someone would pay for a reliably good latte, and have grown exponentially for this.

Read complete article here:

How to set the right pricing strategy | New Worker Magazine.

Post a Comment

WP-SpamFree by Pole Position Marketing