Pricing can be a difficult subject to tackle and is even more difficult to get right, whether for a multi-million-pound company or for the local hairdresser on the high street.
Buyers are now more ‘savvy’ – they have more options and can easily compare your prices to those of the competition – and their expectations are much higher.
However, not even attempting to get your pricing right will mean that you never tap into the higher profits your firm could be generating.
In his brilliant book, Priceless – The Hidden Psychology of Value, William Poundstone has done a fabulous job of pulling together some of the best science around pricing.
He recognises pricing as a much richer subject than most people imagine and provides a truly eye-opening account of how the pricing of products affects how we think of them.
Poundstone shows how behavioural decision theory has revolutionised the pricing strategies of major corporations.
The book also includes many fascinating behavioural experiments and is packed with real life examples of why pricing is so important, as well as the tricks that companies use to sell their products and services.
It’s a book every business owner and manager should read and then begin testing the insights.
Click here to read more about the book and discover how to apply the power of profitable pricing to your firm.