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10 Classic Studies on Pricing Psychology

Utilizing smart pricing when selling your wares, be they products, services or subscriptions, is a must if you want to succeed in a competitive marketplace. The worst thing you can do is to try to wing it when it comes to pricing. Yet this is a mistake I see many entrepreneurs making. Today we will take a look at some fascinating studies in behavioral economics that paint a clear picture of how you should properly set your prices–without the guesswork. Let’s take a look. 1. Similarity Can Cost You Sales. One of the concepts we continually obsess over at Help Scout is “analysis paralysis.” Sometimes marketing (and pricing) needs to help customers get the difference between products, because as it turns out, too many options can be demotivating to consumers. Since this is the case, you would expect that having identical price points for multiple products would be ideal, right? ….[READ]

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