understand the psychology of pricing Recent research found that 60% of retailers view higher margins as a top priority. This may not be surprising for retailers, or perhaps any business, given how tight margins are in 2018 and the direct relationship between margins and profitability. The question remains, however, how do businesses increase their margins? […]

understand the psychology of pricing Recent research found that 60% of retailers view higher margins as a top priority. This may not be surprising for retailers, or perhaps any business, given how tight margins are in 2018 and the direct relationship between margins and profitability. The question remains, however, how do businesses increase their margins? One option is to cut costs and another is to increase prices. This is the fourth of five thoughts addressing the latter.I would argue that $1000 seems a lot to pay for an iPhone, especially when the Samsung product can be $200 cheaper. But when the $1000 option is the cheapest iPhone option, with the others being $1200 and $1300, the $1000 does not seem so expensive. The higher priced alternatives help to frame the cheaper products and, as sales suggest, actually drives the sales of the mid-priced option, which is seen as the ‘Goldilocks…