Some pricing notes

We visit an interesting blog called Pricing for profit. www.pricingforprofit.com

Two notes that i wanted to link here are :
1. Foru pricing strategies in a recessionary environment. Our caution to this is simply that this would apply to a wide range of products, we would not advice premium brands to follow any of these suggestions.

Rebates/ volume discounts/ free gifts etc work to increase volumes without lowering the value proposition for most mass market goods. But anything given free once sets up the expectation of future offers.

In a mass market product, the frequency of purchase and the price of the product help to mitigate these expectations. Not so for premium products.

Beware

http://www.pricingforprofit.com/blog/blog-view.php/blogid/162

2. The second note is on a bit of research that "A Beautiful Woman Can Affect Men's Pricing Decisions"

http://www.pricingforprofit.com/blog/blog-view.php/blogid/176

This has interesting applications especially for the personal loan business. But perhaps would not apply as well in markets with more easily available information.

ritu and venkat