The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 90,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Join FREE
Download Books
No Ads? Join Insiders
Free registration at the forum removes this block.

Recent content by nkolenda

  1. N

    Pricing and Psychology

    NOTABLE! 
    Based on my experience, it might be a tough pitch. A lot of small businesses have trouble seeing the value in social media. But you should be able to improve the pitch by giving them custom-tailored value. For example: Offer them real example posts that they could use Analyze their current...
  2. N

    Pricing and Psychology

    NOTABLE! 
    I like that question (because I would like to know the best answer myself). Here's my guess. For any price with cents, both .99 and .95 will be better than .97 and .90. Since .99 and .95 are more common, people might be less likely to question or second guess the price. If you were to price...
  3. N

    Pricing and Psychology

    NOTABLE! 
    There is a point where .99 becomes counter-productive. But I'm not sure what that point would be (it would probably depend on the product). However, a good rule of thumb might be $100. Anything over $100, leave out the .99. (e.g., use $129 instead of $129.99). Since the power of the effect comes...
  4. N

    Pricing and Psychology

    NOTABLE! 
    I think tactic 12 works best in contexts with a high connotation for negotiation (e.g., car buying, asking for a raise, etc.). If people aren't negotiating on rent (and you think they may be turned off by a high price), then you should go with the second option. Try to give a low price by...
  5. N

    Pricing and Psychology

    NOTABLE! 
    It was essentially the same role - the only difference was the title. My role involved two aspects of marketing research: new product development and litigation support. On the NPD side, I worked with a team to find untapped needs for our clients - usually in three phases. We would first...
  6. N

    Pricing and Psychology

    NOTABLE! 
    I don't have experience with rental property pricing, so don't give too much weight on my suggestions. I know that the research says $999 should be more favorable than $1,000. But my gut says otherwise. I've never come across rental properties that use charm prices, so I'm assuming there's a...
  7. N

    Pricing and Psychology

    NOTABLE! 
    I've always considered precise pricing to be effective because it conveys less room to negotiate (and, as you mention, it conveys a more accurate price - rather than being pulled from thin air). However, in the article, I mention that researchers determined the real reason stemmed from the...
  8. N

    Pricing and Psychology

    NOTABLE! 
    Thanks for the kind words, everyone. I'm glad that people are gaining value from the discussion. Have you considered pricing it at a flat $59? That price seems to meet in the middle of your dilemma. It takes advantage of charm pricing because the left digit changes, but it also avoids the...
  9. N

    Pricing and Psychology

    NOTABLE! 
    With higher prices, there's probably a point where .99 pricing might start to backfire. Since the effect stems from changing the left digit, you could reduce the price by $1 to achieve that effect (e.g., $500 vs. $499 - instead of $499.99) When you add the extra $0.99, it extends the physical...
  10. N

    Pricing and Psychology

    NOTABLE! 
    Ah, gotcha! I like multiple tier pricing. Recently, Mochon (2013) found a "single-option aversion." In other words, when presented with only one option, people are more likely to search for additional options (and thus choose a competitor's product). Multiple tiered pricing helps prevent that...
  11. N

    Pricing and Psychology

    NOTABLE! 
    Could you clarify what you mean by multiple pricing? I could be wrong, but I was under the impression that multiple pricing involved creating a single price for multiple items (e.g., buy 5 boxes of cereal for $10, rather than stating $2/box). If that's what you mean, then I think it can be an...
  12. N

    Pricing and Psychology

    NOTABLE! 
    Thank you! I had never heard of this forum before, but I've been looking around, and it's awesome. It seems to be a very helpful and supportive community.
  13. N

    Pricing and Psychology

    NOTABLE! 
    Here are the factors that I would consider: General Factors Goal: What's more important: money or awareness? With a lower price, you'll gain more readers (that you could upsell to other products and services). Competition: What are the prices of similar eBooks? Market Size: How large is your...
  14. N

    Pricing and Psychology

    NOTABLE! 
    Surprisingly, it makes a big difference. As I describe in the article, those "charm prices" are effective because of the way our brain processes a price. When the left-most digit is lower (e.g., $7.99 vs. $8.00), our brain encounters the 7 first and it becomes anchored around that numeral. All...
  15. N

    Pricing and Psychology

    NOTABLE! 
    Vigilante (one of the moderators) asked me to join this forum so that I could post an AMA. Here goes... My name is Nick Kolenda, and I recently posted a massive article on pricing psychology (which sparked a lot of interest around the web, including the Insider portion of this forum). Some...
See more
Top