Lower prices don't always mean more sales. Raising prices can be even more effective - adding prestige to your brand and anchor prices to your strategy.
What would worry you more – a competitor that charged less or a competitor that charged a lot more?
The price tags on sale items often use anchoring very effectively by including the higher regular price alongside the discounted sale price.
Anchor pricing takes advantage of the human tendency to rely too heavily on the first piece of information received and make later judgements in relation to it.
Information on slack fill, and examples of extreme anchor pricing, "stealth" (hidden) price increases and charging more for less.
A $55,000 pair of headphones illustrate anchor pricing in the extreme, making even $2,500 headphones feel like a relative bargain.
Anchoring is so powerful that retailers continue to risk bad press and class action lawsuits by using phoney anchor prices to motivate buyers.
The historic ships in Baltimore, open to tourists, recognize that they offer diminishing marginal utility and price accordingly.
A high anchor price (the standard registration fee) establishes the value of an event and makes the discounted early registration price almost irresistible.
Anchoring is often used by sellers to make their a price price more attractive. It can also work in reverse, making their preferred price less attractive.
The pricing strategies used by Hollywood often show as much imagination and creativity as the movies themselves, and other vendors can learn from them.
New content added this week covers decoy pricing and price anchoring. Both concepts are defined in the pricing glossary with additional examples in the case studies section.
Ever fallen so in love with what you were saving that you paid less attention to what were you getting, and ended up with something you didn't need or want?
Make better pricing a resolution for 2017. Here are five five pricing concepts florists can use to generate more sales and greater profits this year.