How do you price your products or services? If you are like most small business owners there will be a certain element of guess work, a bit of ‘what are my competitors charging’ and some ‘how much does it cost me?’ There is a lot more to pricing than this, and The Psychology of Price: How to use price to increase demand, profit and customer satisfaction can help.
The book has my ideal structure, incorporating explanations, examples and exercises. Written with a sense of humour, this book uses the example of the Chocolate Teapot Company. Follow this hypothetical company at the start of each chapter and you’ll learn lots about pricing strategies without realising it. Read the detailed explanation that makes up the meat of the chapter, then use the ‘how to apply it’ section for your own business. To make it easier, all the worksheets can be dow loaded from www.psyprice.com.
What will you learn if you read this book? Well, it teaches you that you are in control of what people pay for your products or services. Of course, the market has an effect, but the way you present your offering is key. If you are running a business and feel it is not bringing in the profit that you’d hoped, buy this book and do the exercises. Each chapter is short, so the investment of time will be very much worth it.