Relisting at a higher price an effective strategy?

[reallynicestamps]

It's sometimes called 'aspirational pricing'.

The actual cost of the item to the seller is unimportant. What is being sold is the warm fuzzies.

I'm better/more fashionable/ richer than you are.

like having every room in your house trimmed with gold foil to make people think you have real money instead of owing huge sums to overseas banks.

[18704d]

"Have you ever shied away from something because the price was “too cheap” and therefore questionable?"

---------

35 years ago, I refused the 99 dollar paint job for my automobile,

and instead paid about $400.00 for a local garage to paint it.

Of course, Dupont Centari enamel was 35 dollars a gallon......

Right?

Lynn

[mewgirl1]

---

@richard1rst wrote:

---

@zeussdad wrote:

Curious what the theory is? I thought the conventional wisdom was to relist at a lower price.

---

In my sales and marketing class the professor told us about a store that tried an experiment.

They took 2 pairs of shoes that were identical and put them in the showroom window. The showed one pair with a price, and then the other pair with a price about 10% higher.

They then put a sign between the pairs that reads, in effect:

These 2 pairs of shoes are identical. We are just not sure what is a fair price. Please let us know which price you want to pay.

They then did a Q&A with each buyer and found that the people paying the higher price just assumed that there MUST be something wrong with the cheaper pair. Otherwise why were they cheaper. So they paid the higher price.

Truth be told, the professor never named the store. So I have no way of knowing whether the story is true or just made up for the purpose of making a point. But it is an interesting theory.

Have you ever shied away from something because the price was “too cheap” and therefore questionable?

---

We had a woman do decal type signs for our store windows and for all of our vehicles. Then I was in a business networking group that had a sign man. He was part of a major franchise. The price was so low I felt the vinyl had to be cheaper, so went with the twice as expensive gal again. Later we got a new vehicle that needed signage and let the franchise guy do it. Lasted just as long as the other.

[richard1rst]

---

@18704d wrote:

"Have you ever shied away from something because the price was “too cheap” and therefore questionable?"

---------

35 years ago, I refused the 99 dollar paint job for my automobile,

and instead paid about $400.00 for a local garage to paint it.

Of course, Dupont Centari enamel was 35 dollars a gallon......

Right?

Lynn

---

BINGO!

That would have been Earl Scheib, right? “I’ll paint any car for $99.99”.

I remember those years. They never took the chrome off of the car (for the young’uns - cars had TONS of chrome trim at the time) they simply put masking tape over it so the metal underneath didn’t get painted and in time rusted.

An exact example of my point.

[ittybitnot]

Have you ever shied away from something because the price was “too cheap” and therefore questionable?

Of course.  eBay is a prime example of same...you can buy 14K gold jewelry for 99 cents free shipping 24/7.  If you want REAL diamonds as well the price might go up to $1.99.