Consumers are predictably irrational especially when it comes to customer satisfaction. In fact, when you pay has more to do with customer satisfaction than what you pay.
A Simple Pricing Hack to Increase Customer Satisfaction Read More »
In a perfect world, what a customer spends for something should be based on their opportunity costs. However, customers are irrational when it comes to money. By distorting a customer perception of their opportunity cost, a savvy business can make the customer spend more and be happy to do it.
How to Grow Profit & Satisfaction with Pricing Read More »
The successful entrepreneur is one that keeps his eyes and ears open and takes stock of events happening around him. This is important not only to determine the margin price but to consider the impact potential events could have on the margin price in the future and develop contingency plans to deal with them.
To Maximize Profit You Need To Understanding Margin Pricing Read More »
Is it really better to price your product or service at $59.99 vs $60.00? I’m pretty obsessed with the idea of pricing and the psychology at play. In fact, there is a science that applies to pricing.
3 Powerful Reasons Why a Price Ending in $.99 Sells Better Read More »
As a small business, you have to consider the concept of microeconomics when pricing your product or service to maximize revenue. By definition, microeconomics studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources (i.e., money). Contrast microeconomics with macroeconomics. Macroeconomics considers the sum of all economic activity such
Using Microeconomics to Maximize Revenue Read More »
As I write this post, I have just returned from a motorcycle rally in the Black Hills of South Dakota. This rally is often referred to as just “Sturgis.” As always, the trip was full of lessons for entrepreneurs. Now, you may be surprised by that, but stick with me and you’ll discover these lessons
Four Business Lessons From The Sturgis Motorcycle Rally Read More »
When you have a new product or service, your customers will likely never take the risk of purchasing it unless you offer them a free sample first. Sometimes the free sample may come in the form of a gift from another person. I never considered getting a massage until I received one as a gift.
Free Samples Can Drive Sales Read More »
When you have a free product or service with high amounts of traffic, platform advertisers become interested in subsidizing your free product or service by paying you a fee to share their advertisements. Free products generate high platform traffic and increase the attractiveness of your platform to advertisers. Freemium users get basic functionality for free.
Free as a Business Model Read More »
Turning a hobby or a craft into a business often has a fatal flaw with scalability. Say you have a business that produces 100 units that you plan sell for $25 and it costs you $20 to produce it. As a small scale business, you are happy with a $5 profit on each piece since
How to Price Your Hobby and Craft Projects Read More »
Relative differences are rooted more firmly in our psychology then absolute differences. This is a way people respond irrationally that the savvy business person should understand and use to his advantage. Let’s look at an example. Since today is tax day, let’s say you are in the market to buy a copy of Turbotax. You
Relative Price Psychology Read More »
