Setting Profitable Prices: A Step-by-Step Guide to Pricing Strategy--Without Hiring a Consultant, + Website

Chapter 10

Psychological Adjustments to Your Price

In-a-Rush Tip

Don’t skip this critical chapter! But you can skip the “Learn More” at the end.

By reaching this chapter in this book you now have:

• A price range that buyers have shown they will pay for a product of roughly your benefits and your negatives.
• Your costs.
• Knowledge that you can make an acceptable profit given the two points.

Chapter 10 is where you will learn to adjust your prices to take advantage of buyer psychology.

Don’t skip this step! Buyers make instinctive judgments about prices based on both constant cultural exposure to numbers and prices and by how our brains are wired. Not paying attention to pricing psychology can cause your product sales to be 10 percent lower, 15 percent, or even worse.

It’s that important.

Understanding “Barriers” in Prices

A key part of brain development is learning how to screen out unnecessary “noise” from our senses. Otherwise we would be paralyzed by all the input coming in every minute.

Native speakers of any language that reads left to right, as ours does, have learned that the numbers on the left side of a number are far more important than the numbers on the right. On the right are cents, or dollars. On the left are thousands, millions, or even billions.

In addition to paying more attention to the leftmost parts of numbers, we have also learned that larger equals bigger. ...