Pricing Strategies

Abstract

I argued in the previous chapter that it is the factory’s job to make costs low, and it is marketing’s job to make prices high. In this chapter I describe some of the strategies your marketing managers can use to make prices higher, preferably without your customers noticing. Fortunately, for marketing managers, people are not mathematicians and thus there are many ways we can make people both poorer and happier or at least not unhappier. Are these strategies ethical and honest? Some are and some are not. Sellers have a right to try to get a better price just like buyers have a right to get a lower price. But remember to be wary of strategies that produce a sale at a higher price at the expense of an unhappy customer. Here are some of the things we know and use in marketing.