12 February 2007

What's the right price?

Price is a complex topic. The right price is the one which allows the Seller to sell profitably and where they Buyer can see real value in what they have bought. That price is going to be different for different Buyers so some experimentation is called for. Sometimes an offer of a great product or service is let down because the seller doesn't have the nerve to pitch the price high enough - the prospect looks over the offer and dismisses it because "it couldn't be as good as they say at that price!".

As a real life example, a website that I'm aware of has just increased its prices by 20% and Buyers seem to be undeterred. Should they increase prices further? I don't know, but it might be worth more experimentation.

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