The Price Is Right? Wrong? Who Knows

The price of something rarely has to do with how much it costs to make it. Setting prices is a complicated psychological game. “Anyone who sells anything knows that price is the pivot of business, the ultimate leverage. If you can raise prices – even a bit – you can increase profits dramatically. If you can’t raise prices, you feel like your business is struggling, regardless of what is happening with cost, quality, or service. Meanwhile, anyone who buys anything knows that almost nothing has a single price anymore. Want to know the price of something? Well, you get back a series of questions: Who are you? How long have you been a customer? How much are you buying? How good are you at unblinking negotiation? Did you bring your frequent-shopper card?”