Rafi Mohammed

Stop Being Fooled by List Prices

Posted on October 17th, 2013 (0 Comments)

Delving into the purchasing minds of consumers is tricky. What’s better? A low price or the feeling of getting a low price? As J.C. Penney discovered, low prices aren’t enough – consumers need the emotional rush of feeling as if they are getting a good deal. Oh and doing so can be highly profitable – Jos. A. Bank, the clothier focused on offering buy one, get 2 (or in some instances up to 7) for free deals has a 58% gross margin!

Please check out my latest piece for the Harvard Business Review which discusses the role of list prices in your pricing strategy. As always, your comments will be most appreciated.

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