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Pricing Power

By Golf Business posted 06-10-2015 16:07

  

According to retail consultant James Dion, the key to understanding why pricing methods work is realizing two things about human nature. First, consumers are twice as likely to avoid loss—or the perception of it—than seek a “win.” Second, customers view money as good and having to give it up as bad. Thus, the way retailers frame a sale or price is very important.

For example, the use of the word "save" makes customers think of how much money they’ll save versus how much they’ll spend. This is why many stores print a reminder on their receipts such as, "You saved $xx by shopping with us today!”

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