Tag Archives: premium pricing

Pricing for Profit

Substantial research and evidence exists to show that people are irrational about prices … and predictably irrational. Another study, this time in the hospitality industry, demonstrates this fact. Cornell University did a research study on menu pricing in restaurants. The key … Continue reading

Posted in Pricing | Tagged , , , , , | Leave a comment

Make More Money By Selling What They Are Buying

Last week I posted about the difference between focusing on what you sell and what the customer is buying using the Stradivarius violin as an example. A new/old example came up again this week: Corona Beer. Bloomberg News, in an … Continue reading

Posted in Pricing, What | Tagged , , | Leave a comment

What You Sell Is Not What They Are Buying

Why would people pay more for something that is provably the same as another thing that is less expensive? Two pairs of jeans can come off the same production line, one gets a “private label” and the other a “designer … Continue reading

Posted in Pricing, What | Tagged , , , | 1 Comment

If people were rational, prices would be too

Despite the beliefs of economists to the contrary, Kahneman & Taversky proved convincingly that human beings were not rational when it comes to prices. This point was driven home to me again when looking at Vodka. The U.S. Government defines Vodka by code as … Continue reading

Posted in Pricing | Tagged , , , , | 1 Comment