Tuesday, June 11, 2013

5 Observed Laws Of Pricing

1. Once a thing has been free you cannot charge for it without a significant brand or improvement (e.g. no-spy public wifi)

2. The more expensive a thing gets, the more expensive we expect it to get. Discounts are then counterproductive.

3. Brands and sales do not go together.

4. Charging for a thing makes it seem better. Often the less you charge, you find you cannot give it away.

5. The less you charge for a thing the more aggravated a customer gets over minor variations in price. So charge one price if possible (eg McDonald's coffee $1 for any size).