The Surprising Psychology of Pricing: Why Charging More Can Boost Your Sales

Pricing is one of the most misunderstood elements of service marketing. Many believe lowering prices will boost sales, but the reality is often the opposite. Raising prices can increase demand by signaling higher quality and exclusivity.

A Native American jewelry store doubled their prices on turquoise pieces and sold out, proving that customers associate higher cost with better craftsmanship and prestige.

Pricing also involves the resistance principle: if no one complains about your price, it’s probably too low; if everyone complains, it’s too high. The ideal scenario is about 15-20% of customers showing some resistance, indicating that your price communicates value while remaining acceptable.

The 'dead middle' pricing—neither premium nor budget—often signals mediocrity and confuses customers. Position your pricing to reinforce your unique value and brand position.

Charge not just for the time spent but for the years of expertise and mastery behind your service. Like an artist who charges for a lifetime of skill, your pricing should reflect your unique value proposition.

Understanding and applying these pricing insights will help you communicate value effectively and attract clients who appreciate your expertise.

In our next blog, we’ll delve into branding and naming strategies that build trust and make your invisible service tangible.

Sources: TheCmo.com, MarketerMilk.com 1 4