Tag: pricing
Shall we put our prices up?
Raising prices is always worth considering, but there are several factors to think about first. Here’s a useful list to help you get started. Penetration Pricing The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used…
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Drip Pricing
What is Drip Pricing? A price is quoted. Then, at various stages of the sale completion, additional charges are added, or dripped, to the total. The final price is a fair bit higher than the original price; this is drip pricing. At the time of writing, this practice is partly outlawed in the European Union…
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Clarity of Disposable Lense Pricing
Is the pricing on this advert misleading? The headline price of £5.99 is shouted loud and clear. In reality, the minimum transaction cost is £13.38. £5.99 gets you a box of 32 disposable contact lenses. But you cannot buy one box, the minimum order is, as shown in the small print, 2 boxes. Then you…
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Decoy Pricing to Make More Dough
Don’t put your prices down, use a decoy. Let me explain the idea with a case study from Williams-Sonoma, an American publicly traded consumer retail company that sells kitchenwares and home furnishings. Williams-Sonoma introduced a home bread making machine for $275. Sales were significantly lower than expected. One option was to discontinue the product, another…
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How Much Does a Ghostwriter Cost?
As a continuation of my fascination in pricing methods, I found it interesting to learn the different approaches to pricing used by ghostwriters. Their charges can be by: hour word page project percentage of profits combination of the above Depending on the experience of the ghostwriter experience and the complexity of the project, the charges can…
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Demand based pricing in action
Cost plus pricing? Bin it. I’ve talked before about the many different approaches to pricing. Here is a stunning example of demand-based pricing in action. This is the ABode Hotel, Chester and their room rate pricing around Ladies Day and the Chester Races. As you can see, Ladies Day is £370 versus a regular pricing…
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