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Smarter Pricing: How to capture more value in your market
book

Smarter Pricing: How to capture more value in your market

by Tony Cram
January 2005
Intermediate to advanced
232 pages
5h 35m
English
Pearson Education Canada
Content preview from Smarter Pricing: How to capture more value in your market

Love discounts, hate surcharges

When prices are presented in price lists, adjustments to the price scale will be included, perhaps discounts for quantity or surcharges for urgent deliveries. These are also a key part of price communication. Losses or surcharges are weighed much more heavily than gains or discounts – the framing effect. Surcharges will therefore attract proportionately more negative attention than the positive effect of discounts. So the conventional advice is to present top-end prices and then allow discounts off these amounts, rather than presenting low-end prices and adding surcharges.

There is an exception to this rule. If the surcharge you add directs blame to another party, it can underline your commitment to good value. ...

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Publisher Resources

ISBN: 9780273706137Purchase book