32 lessons in pricing
- 1. 32 lessons in pricing The first compilation by Dreamers and Executors community
- 2. 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
- 3. Part 1: general lessons in psychology (fundamentals)
- 4. Lesson # 1: Understanding the customer psychology makes business and marketing a bit more predictable. Source: Forbes.
- 5. Lesson # 2: Sally, the owner of your mobile app, is not rational.
- 6. Lesson # 3: Value your prospects and make them feel significant.
- 7. Lesson # 4: Highlight your strengths by admitting shortcomings. Source: Buffer blog.
- 8. Lesson # 5: Tailor your marketing messages to the personality traits of your target customers. Source.
- 9. Lesson # 6: Understand what the buyer wants. Source: KISSMetrics.
- 10. Lesson # 7: Remind customers how easy it is to get started and achieve their goals with your solution. Source: Buffer app blog.
- 11. Lesson # 8: Use urgency the smart way. Source: Buffer app blog.
- 12. Part 2: exploiting pricing cues
- 13. Lesson # 9: “Sale” can increase demand by more than 50%. Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
- 14. 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.
- 15. 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.
- 16. 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.
- 17. Lesson # 13: Pricing optimization should be balanced with efforts to cultivate brand image. Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
- 18. Lesson # 14: Customers do use price as an indicator of quality. Source: Harvard Business Review’s article titled Mind Your Pricing Cues.
- 19. 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.
- 20. 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.
- 21. Part 3: capturing more value with prices
- 22. 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.
- 23. Lesson # 18: Be proactive in your pricing. Source: Harvard Business Review’s article titled Pricing to create shared value.
- 24. Lesson # 19: Flexibility is value. Source: Harvard Business Review’s article titled Pricing to create shared value.
- 25. Lesson # 20 : When choosing pricing, focus on simplicity. Source: Harvard Business Review’s article titled Pricing to create shared value.
- 26. Part 4: innovations in pricing
- 27. Lesson # 21: You can innovate on the price-setting mechanism. Source: Harvard Business Review’s article titled Capturing more value with prices.
- 28. Lesson # 22: You can change the payer. Source: Harvard Business Review’s article titled Capturing more value with prices.
- 29. Lesson # 23: You can change the price carrier. Source: Harvard Business Review’s article titled Capturing more value with prices.
- 30. Lesson # 24: You can change the timing. Source: Harvard Business Review’s article titled Capturing more value with prices.
- 31. Lesson # 25: You can change the segment. Source: Harvard Business Review’s article titled Capturing more value with prices.
- 32. Lesson # 25: You can change the segment. Source: Harvard Business Review’s article titled Capturing more value with prices.
- 33. Part 5: pricing and psychology of consumption
- 34. 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.
- 35. 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.
- 36. Lesson # 28: Higher consumption means higher sales. Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
- 37. 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.
- 38. Lesson # 30: Pricing drives perception of cost. Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
- 39. Lesson # 31: Get the payments and consumption in sync. Source: Harvard Business Review’s article titled Pricing and psychology of consumption.
- 40. 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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