10 Simply Stupid Pricing Tips, by Pricing Prophet, Jon Manning gives us ten important pricing lessons on how to price wisely. Jon calls them "tips"; I prefer to call them "retail pricing strategy mistakes". Manning, as always, tackles the essential issues and cuts to the heart of the matter with a rapier. In his latest video, below, Jon presents the following pricing faux pas, followed by his brief, pointed, educational observations:
1. Sign says, "Buy 3, Get 0": Manning says, "That's no way to acquire new customers. Make sure there's actually something for free. Pricing is not an advertising model."
2. Sign says, "FREE POT" with small print... "with any plant purchased." Jon says, "that's misleading. Don't try to fool the customer that he's getting something for free."
3. Sign says, "Fresh Crap" but was meant to read "Fresh Crab," or maybe "Fresh Carp": "Check your product and price tag information to be sure it's correct."
4. Sign says, "T-Shirts, $4.99 each, Two For $900.00": "Watch those decimal points. Make sure your decimal point is in the right place."
5. Wine being advertised at, "The extra low price of $539.00": Jon says, "get your price channel and price point right! This price point confusion indicates cheapness rather than quality."
6. Sign says, "Discount, 51.8647%": Jon says, "It's ok to try something different."
7. Man getting tattoo that doesn't look at all like the sketch he chose: "You get what you pay for. There's always someone who'll do it cheaper."
8. Chinese restaurant sign saying, "All you can eat," then goes into great detail on when you can't have "all you can eat": "Check terms and conditions."
9. "For sale: Land on the moon": "Have a credible product".
10. Sign says, services cost $100,000 per hour: "Use the right pricing metric. Make sure you know the difference between per annum or per hour."
Bottom Line For A Retailer's Bottom Line:
Get your price channel and price point right; pay attention to detail that will get you customers and keep them; keep your eye on the ball for appropriate pricing, selling, and profit through sophisticated price optimization software.