How Products Are Priced -- The Psychology Of Pricing
July 31st, 2022 at 7:21AMWho's this shit really deceiving? If I sell 1000 products for $2.00, I make $2,000. If I sell 1000 products for $1.99, I make $1,990. I only need to sell 6 more products to make up the difference, but the idea that this is some psychological trick damns us all.
Who's more likely to believe this explanation, though? Businesses and consumers or politicians, intellectuals, economists, teachers, etc.?
We all actually deal with this reality and no one (I hope) actually believes they would choose not buy something because it costs a penny more, so why do we actually buy more of something because it costs a penny less?
Where's the lie? Everyone (I hope) would learn this gimmick and think they're not that dumb, but it works, too, so does that mean some people are that dumb?
I don't like this explanation, that businesses trick their consumers with pricing. It's much more likely that they recognize when you add up all the purchases that every penny counts more, so when they lower prices they sell more products.
I agree there's a sweet spot where a business will sell the most while making the most, that every consumer should look for the lowest-priced products they can afford while every business should sell their products for the highest price they can earn, but pitting them against each other benefits no one.