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CFO Bookshelf

The Psychology of Pricing

Oct 21, 2023
52:34

If you have read any books on pricing, the title that stands above the rest 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. The subtitle is 100+ effects on persuasion and influence every entrepreneur, marketer and pricing manager needs to know.

While this book is for the hardcore marketer and CMO, I recommend it to CEOs and CFOs too as pricing is a vital discipline that's lacking in many small businesses.

A few of the topics we cover include:

  • Flat Rate Bias
  • Scarcity
  • Reciprocity
  • $0.79 or $ 0.93
  • Dropping Commas
  • The Problem with Discounting High-Quality Products


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