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The Science Of Pricing [Pic]

Hits: 9911 | Rating: (3.4) | Category: Community & Lifestyle | Added by: kitteh9lives
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Male, 30-39, Southern US
 227 Posts
Friday, April 05, 2013 9:37:57 PM
Why have I always seemed like the only person to see through these kinds of marketing scams? Hell, I always round prices up, anyway. $49.95 is $50. Why don't they just price it at $50 to begin with? Is anyone really stupid enough to think that there's enough difference between the two to buy a product at $49.95, but not buy it at $50?

Male, 30-39, Europe
 233 Posts
Friday, April 05, 2013 2:47:26 PM
If you go from 100 % (original) to 800 %, it's a 700 % increase.

Male, 50-59, Southern US
 2576 Posts
Friday, April 05, 2013 1:14:55 PM
The flaw in your logic is that by using only the free service, Yahoo didn't lose anything when you left. This graphic is showing that even though most of their free "customers" won't pay to upgrade, enough of them will to make it the more profitable move.

Male, 18-29, Western US
 102 Posts
Thursday, April 04, 2013 9:14:25 PM
>Get rid of the free plan

My favorite example of why this is bullsh*t: Yahoo used to offer POP3 support for their email. Suddenly they no longer offered such support and wanted to charge a subscription for it! This was around when Gmail first came out, so guess where I went after Yahoo pulled that!

If you already have a free service, at the very least don't screw over your existing customers. While sure, you have every right to revoke a complimentary service, it's a major d*ck move and it's only going to piss off any loyal customers you might have had otherwise.

Male, 18-29, Midwest US
 1725 Posts
Thursday, April 04, 2013 9:08:10 PM
I hate these friggin people that study this poo and try to manipulate a couple extra dollars or cents out of me. Just price the thing at what it costs plus a reasonable profit. This is why my impulse buying is zero, and I avoid everything where the margin is absurd, starbucks coffee - a cup of coffee is not drating 5 dollars, ever.

Female, 30-39, Midwest US
 1511 Posts
Thursday, April 04, 2013 5:13:32 PM
As someone who works in marketing, I found this very helpful. Thanks!

Male, 50-59, Canada
 29120 Posts
Thursday, April 04, 2013 1:25:23 PM
@AvatarJohn: That's 100% accurate!

White House Pricing:
Plan to spend 1 billion on some useless program.
"Cut" the program by 20%
Claim to have SAVED $200,000,000!!
Get re-elected
Re-fund the useless program when no one is looking...

Obama's entire administration has worked this way since Day 1, but the Repubs do it too... "let me be clear about that" as BHO is fond of saying...

Male, 18-29, Eastern US
 663 Posts
Thursday, April 04, 2013 12:49:43 PM
Where them bar prices at?

Male, 40-49, Midwest US
 2021 Posts
Thursday, April 04, 2013 11:53:35 AM
@AvatarJohn, I think you have amused me. Good one. I am starting my business to sell to the govt.

Male, 30-39, Southern US
 1061 Posts
Thursday, April 04, 2013 11:41:03 AM
Tip for selling to the government: Set up a yearly subscription or service that increases by 12% every year. Whenever "cuts" happen, only increase your price by 6% that year and complain loudly that they are forcing you to cut your price by 6%. Then substitute a lower-quality product or service or cut features and blame it on Republicans for forcing "sequester cuts". It helps if you can somehow kill children, old people or people with cancer and also blame the "cuts" for those deaths.

Male, 60-69, Western US
 2038 Posts
Thursday, April 04, 2013 11:28:46 AM
I just buy the cheap beer. The toilet doesn't know the difference.

Male, 50-59, Canada
 29120 Posts
Thursday, April 04, 2013 11:10:31 AM
It's true: there's 100s of ways to "trick" the public into thinking they're getting a good deal!

This subject has been studied extensively! I cannot quibble with any of the data presented here.


Male, 18-29, Eastern US
 257 Posts
Thursday, April 04, 2013 10:36:14 AM
What about gas prices with their 9/10th of a penny?

Male, 30-39, Eastern US
 14177 Posts
Thursday, April 04, 2013 10:22:58 AM
God I hate that $4.99 crap just round the friggen price up FFS!!

Female, 18-29, Midwest US
 639 Posts
Thursday, April 04, 2013 10:06:51 AM
My conclusion from this? People are drating gullible.

Male, 50-59, Western US
 34633 Posts
Thursday, April 04, 2013 10:04:47 AM

I beleive most people don't look into pricing that much. They just get what they get.

Me, I'm the tight fisted cheepo who can make a nickel last a week. It's kind of a game, a puzzle to get the most from the least. Research pricing via web, circular ads, coupons, double-coupon days... but ONLY buy it if A: you actually eat/use that thing and B: if it's on sale.

Never pay retail!

Female, 70 & Over, Eastern US
 1632 Posts
Thursday, April 04, 2013 9:50:00 AM
Link: The Science Of Pricing [Pic] [Rate Link] - Going to buy something expensive? Think about these points first.

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