The secret to pricing is its arbitrariness, subjectivity. What disrupts this is anchoring, a preconceived benchmark of what should be the price. Classical economics describes consumers as rational purchasers of goods and services weighing benefits and costs. In reality, that weighing is just a rational wrapping for subjective tendencies. Traditional pricing methodologies attack the weighing….
Tapping pricing’s secret is a battle over establishing the anchor in the consumer’s mind. Unless we are the ones who set the anchor, it’s generally better to establish a different one by elevating the differences in our products and services. We begin by creating a story about them followed by an emotive connector tying it…
Normally, when pricing our products and services, we research the market, compare our features and benefits, consider our margins and then set our price. In the previous post, I wrote about the role stories and emotions play in setting the stage for pricing. We commonly call it branding. Its importance is nothing new, but branding…
I’ve written much about storytelling’s importance. Yet, I was surprised when I attended a business valuation seminar by Skoda Minotti CPA’s, Business & Financial Advisors. One of the presenters, Robert Ranallo, who frequently serves as a court-appointed attorney in the resolution of complex commercial disputes and business valuation matters, unexpectedly emphasized storytelling’s importance in response…