RESEARCH SUPPORTS SOME VERY POPULAR PRICING STRATEGIES This is the fifth of five articles in THE REPORT this week on the subject of pricing – considering strategies for maximising margins in the short, medium and long terms. We are all familiar with the pricing strategy involving the number ‘9’. There has long been a view […]

RESEARCH SUPPORTS SOME VERY POPULAR PRICING STRATEGIES This is the fifth of five articles in THE REPORT this week on the subject of pricing – considering strategies for maximising margins in the short, medium and long terms. We are all familiar with the pricing strategy involving the number ‘9’. There has long been a view that a product priced at $39 will sell better than the same product sold for $40. What is more research carried out by William Poundstone has found this view to be an accurate reflection of reality. A product will sell better at $39 than $40. But wait – there is more… In a study Poundstone compared three price points – $39, $34 and $40 and found that $39 generated the highest level of sales – even more than $34. This suggest both the power of ‘9’ and the impact of fast thinking. In another study…