http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png 0 0 Daryl Lu http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png Daryl Lu2017-12-14 23:08:002020-12-09 10:10:48Doubling Price to Sell the Unsellable
There’s a story in Robert Cialdini’s book Influenceabout pricing strategy and psychology. The story goes that a Native American jewelry store had an abundance of turquoise jewelry.
The owner wanted to move the inventory, and tried several sales best practices including product placement and advising her staff to push the jewelry. However, the inventory didn’t move.
As the owner was leaving for a business trip, she scribbled a note for the manager to move the inventory by cutting the price in half.
When the owner returned, all of the inventory had sold. The remarkable part of this story, however, is that the manager misread the note – doubling the price instead of halving!
The previously unsellable jewelry became sellable. Customers associated the high cost of the pieces as high quality.
Consider the factors at play when considering pricing products and services. The market does not always dictate price as you might expect.