32 lessons in pricing
TRANSCRIPT
32 lessons in pricing
The first compilation by Dreamers and Executors community
What will we cover?
Part 1: general lessons in psychology (fundamentals)
Part 2: exploiting pricing cues
Part 3: capturing more value with prices
Part 4: innovations in pricing
Part 5: pricing and psychology of consumption
Part 1: general lessons in psychology (fundamentals)
Lesson # 1: Understanding the customer psychology makes business and marketing a bit more predictable.
Source: Forbes.
Lesson # 2: Sally, the owner of your mobile app, is not rational.
Lesson # 3: Value your prospects and make them feel significant.
Lesson # 4: Highlight your strengths by admitting shortcomings.
Source: Buffer blog.
Lesson # 5: Tailor your marketing messages to the personality traits of your target customers.
Source.
Lesson # 6: Understand what the buyer wants.
Source: KISSMetrics.
Lesson # 7: Remind customers how easy it is to get started and achieve their goals with your solution.
Source: Buffer app blog.
Lesson # 8: Use urgency the smart way.
Source: Buffer app blog.
Part 2: exploiting pricing cues
Lesson # 9: “Sale” can increase demand by more than 50%.
Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
Lesson # 10: Products with prices that end in 9 still have remarkable power, but not when they are already on sale.
Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
Lesson # 11: Pricing cues should be implemented systematically. You should mindful of their long-term implications.
Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
Lesson # 12: Pricing cues work best if: customers purchase infrequently, are new, if product designs vary over time, prices vary seasonally, quality or sizes are not standarized.
Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
Lesson # 13: Pricing optimization should be balanced with efforts to cultivate brand image.
Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
Lesson # 14: Customers do use price as an indicator of quality.
Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
Lesson # 15: Consumer satisfaction with a product depends, at least in part, on the amount of effort in which the consumer expends to obtain the product.
Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
Lesson # 16: Sometimes customers pick higher-priced brand as a way to reduce the risk of choosing a product of significantly poorer quality.
Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
Part 3: capturing more value with prices
Lesson # 17: Switch your focus from transacting your customers to building relationships with them.
Source: Harvard Business Review’s article titled Pricing to create shared value.
Lesson # 18: Be proactive in your pricing.
Source: Harvard Business Review’s article titled Pricing to create shared value.
Lesson # 19: Flexibility is value.
Source: Harvard Business Review’s article titled Pricing to create shared value.
Lesson # 20 : When choosing pricing, focus on simplicity.
Source: Harvard Business Review’s article titled Pricing to create shared value.
Part 4: innovations in pricing
Lesson # 21: You can innovate on the price-setting mechanism.
Source: Harvard Business Review’s article titled Capturing more value with prices.
Lesson # 22: You can change the payer.
Source: Harvard Business Review’s article titled Capturing more value with prices.
Lesson # 23: You can change the price carrier.
Source: Harvard Business Review’s article titled Capturing more value with prices.
Lesson # 24: You can change the timing.
Source: Harvard Business Review’s article titled Capturing more value with prices.
Lesson # 25: You can change the segment.
Source: Harvard Business Review’s article titled Capturing more value with prices.
Lesson # 25: You can change the segment.
Source: Harvard Business Review’s article titled Capturing more value with prices.
Part 5: pricing and psychology of consumption
Lesson # 26: People are more likely to consume a product when they are aware of its cost.
Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
Lesson # 27: When employing your pricing tactics, always consider their impact on long-term consumption.Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
Lesson # 28: Higher consumption means higher sales.
Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
Lesson # 29: Consumption helps establish switching costs, which can drive the value of your business through the roof.Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
Lesson # 30: Pricing drives perception of cost.
Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
Lesson # 31: Get the payments and consumption in sync.
Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
Lesson # 32: Price bundling may increase short-term demand, but decrease long-term consumption.
Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
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