Re:Pricing Your Product: it Doesn’t Have to Be so Complicated
by larrys on Sunday August 26, 2012 @06:35PM
(#4436505)
"and experience that you shouldn't ask anyone how much they're willing to pay for anything."
My experience, over many years, is the same as well.
People first of all don't even know what they will pay. They can be manipulated into paying more than they were willing to by anchoring and a whole host of negotiating tactics. As another example, just take a look at the way that auctions work. You might decide upfront you will only pay $100 for an item but if someone outbids you the thought of losing the item when you can offer $5 more draws you into bidding more than you would have expected to.
Also look at the way infomercials work in manipulating people to make purchases. "What if we told you this costs $15, well it's $10 and we're going to give you 2 of them". Etc.
It's actually way more complicated than that but for the love of god just don't ask people what they'd pay. People are terrible about managing hypothetical money and purchases.