Thursday, June 3, 2010

The Psychology of Pricing

Why is it that $1999 sounds so much more affordable than $3980? Why was there so much resistance to the nearly $4000 price of the SD501 and at $1999 retail our new water ionizer is flying off the shelves?

This is just speculation, but here it is. What's your credit card limit? If you're like most people, it's probably between $2000 and $2500. You couldn't just put the SD501 on your credit card ... you had to use two.

How much did you pay for your last computer? Your flat screen HDTV? How much do you pay for your cell phone and data service? Cable or satellite TV? Does $1999 sound like much more than that?

We are used to paying around $2000 for something electronic or digital or technical. But $4K ... that could buy a motorcycle or a really good mountain bike. Or a vacation. Or a used car.

Just sayin' ....

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