This is a great lesson on coffee pricing: Smuckers, which sells Folgers and Millstone coffees, recently said it was raising its prices because of the higher cost of beans. Starbucks, on the other hand, said it would absorb the higher cost of beans without raising prices. “You see it much more in the grocery store […]
Pricing
One of the most interesting and confusing aspects of business is pricing. I do not have a handle on it and I appreciate anything I can learn about pricing strategies. I have two stories to compare. Each is about “we will beat our competitors’ prices” strategies. Putting a floor on estimates Blogger Jeff Zbar has […]
Just in case you don’t know how an anchor affects your prices, you need to read this explanation: “Any time you have to estimate a numerical value, it turns out you’re very susceptible to the power of suggestion,” says William Poundstone, author of the new book Priceless: The Myth of Fair Value (and How to […]
Tim Berry compares two stock photo revenue models. They are both used by the same company. One is a subscription model. You pay a monthly fee to use photos. The other is a credit-based model. You buy x amount of credit which is applied when you need photos. Neither model cannibalizes the other because each […]
Another discussion of how to determine prices: Price influences behavior. In order to craft an excellent user experience, the price — and how your users interact with that price — must be central to the development of the product, especially applications. No user will welcome an application if the cost is prohibitive. This makes price […]
Setting a price is one of the trickiest part of freelancing. In the freelance world, it can be a bit complex when it comes to deciding what you should pay for copywriting services since ever project is unique. You can set a price per word price or a price per page or document price but […]