The Psychology of Pricing

If you have read any books on pricing, the title that stands out is Hermann Simon’s Confessions of The Pricing Man. However, suppose you are looking for a book that includes nearly every pricing tactic ever used in business. In that case, I’d start with Handbook on the Psychology of Pricing by Dr. Markus Husemann-Kopetzky. While this book is for the hardcore marketer and CMO, CEOs, and CFOs will also gain valuable insights from this highly readable book.

Interview Highlights

The Brian Tracy blurb, how cool
Markus’ origin story
The reason it’s a handbook – and who should read this book and how
“Pricing is as much art as science.”
Presenting and framing a price without changing it
The reason pricing illiteracy is prevalent today in small business
$0.79 vs. $0.93
Leaving out commas
The problem with commas
Flat rate bias
Scarcity – fact-based vs. artificial
Reciprocity
The family that drives through a snowstorm to see a basketball game and payment depreciation
Knowing the touchpoints of the customer’s decision-making process

Purchase

Handbook on the Psychology of Pricing: 100+ effects on persuasion and influence every entrepreneur, marketer, and pricing manager needs to know

$2.99

This readable book distills insights and effects on psychological pricing from hundreds of research papers and translates results into actional recommendations.