

Your price may be too low, increasing it may spur sales - jslogan
http://www.b2brainmaker.com/blog/40-blog/139-your-price-may-be-too-low-increasing-it-may-spur-sales

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jk4930
Correct. And I follow this "strategy" since some years when it comes to
services and specialized products (not mass products, which I make as cheap as
possible). Low prices usually attract nasty clients with inappropriate
expectations.

And from my side as a client: E.g., I don't look at clothes that are cheap.
They usually don't look good, have low quality, wearing them feels unpleasant
and--very important--send wrong signals to those who know good clothes (and
believe me, many important people spot the quality of your clothes). Going for
long-lasting quality usually has its price. I'm not necessarily buying
expensive stuff because it's expensive, but it gets my attention at least.

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m0nty
I'm not too sure about the name of that website:

"He rain-made you. A guy says if you pay him, he can make it rain. You pay
him. If and when it rains, he takes the credit. If and when it doesn't, he
finds reasons for you to pay him more. Clay Davis rain-made you!"

That aside, this is not rocket-science, just basic marketing. The only proviso
is that you can price yourself out of the market. I recently purchased a new
AV product for half the originally-quoted price. I liked it for its
convenience, simplicity, etc, but it wasn't so simple and so convenient I
would pay UKP5000 to replace Kaspersky at UKP1700, nearly 3x the amount. The
sales guy took the point and brought the price down to UKP2500. So, I paid
extra but felt like I got a bargain, which says plenty for that guy's sales
skills.

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robryan
Also, if your product can be used by a customer in a way that they can see a
direct dollar value stemming from it's usage don't be afraid to charge an
amount proportional to that dollar value.

Even a very simple product may be worth $100 a month to someone if they can
directly see $500 being added to the bottom line with it's use. Sometimes
these types of products cheapen themselves by selling for proportional low
prices.

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SlyShy
There is a lot of upside to being perceived as a luxury good. I think Apple is
the model example. Anecdotally, I know my mom charges a lot more for piano
lessons than many other teachers in the area. Which has the effect of making
her more sought out by suburban parents with disposable income.

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RodgerTheGreat
I hope this won't come off as too critical, but you're using the word
"penultimate" incorrectly- I've done it myself many times.

To quote Wikipedia, "The ultimate is the last and final item in a series. The
related words penultimate and antepenultimate refer to the second-to-last and
the third-to-last item in a series, respectively."

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SlyShy
There's no need to apologize for critique. Thanks.

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andrewljohnson
Yeah, this is often true. My iPhone app sells better at 2.99 than 1.99, and I
may bump the price again. Hard to A/B test on the App Store though.

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aresant
Price elasticity testing is one of the simplest, and most profitable
experiments you can run in an A/B testing engine:

[http://www.marketingexperiments.com/improving-website-
conver...](http://www.marketingexperiments.com/improving-website-
conversion/finding-ideal-price-points.html)

<http://en.wikipedia.org/wiki/Price_elasticity_of_demand>

