How to determine the price point of your product? First: the number “nine” really can make a difference. Second: when you exceed a pricing threshold such as 99¢, you need to find the next threshold above that price point. Otherwise, you will be leaving a lot of money on the table.
Your boss gives you a seemingly impossible task: Increase profits by 12.5%. How do you respond? Some managers might spend a great deal of time trying to persuade the boss to reduce her expectations. A more productive response would be to improve management of prices by just 1%.
I was speaking with an executive today whose company provides AI software applications. They recently developed one for pricing. Essentially, it crawls the web and provides information on the best prices in retail electronics. I took a look at the site and thought there were some compelling elements to it.
Last week, I had two pricing experiences that got me thinking about how to price. One was a scam that was effective. The other ended up feeling like a scam and was ineffective.
