$2.50 beer outsells $1.80 beer One of a number of renowned studies by pricing guru, William Pound, found that: Audience 1 offered two beers chose the more expensive more often $1.80 – 20% of sales $2.50 – 80% of sales Audience 2 offered three beers chose the medium-priced option more often $1.60 – 0% $1.80 […]

$2.50 beer outsells $1.80 beer One of a number of renowned studies by pricing guru, William Pound, found that: Audience 1 offered two beers chose the more expensive more often $1.80 – 20% of sales $2.50 – 80% of sales Audience 2 offered three beers chose the medium-priced option more often $1.60 – 0% $1.80 – 80% $2.50 – 20% Audience 3 offered three dearer beers chose the mid-priced option more often: $1.80 – 5% $2.50 – 85% $3.40 – 10% These findings suggest several conclusions confirmed in other studies: Price is a very complex issue, and much more complex than ‘lowest is best’ Comparing prices is common and can change preferences Offering three alternatives can be a very effective strategy Price is a lot more complex than many think and certainly more complex than lowest is best. Just ask Proctor and Gamble who sold more units of an Olay…