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Priceless: The Myth of Fair Value (and How to Take Advantage of It), by William Poundstone
Get Free Ebook Priceless: The Myth of Fair Value (and How to Take Advantage of It), by William Poundstone
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Prada stores carry a few obscenely expensive items in order to boost sales for everything else (which look like bargains in comparison). People used to download music for free, then Steve Jobs convinced them to pay. How? By charging 99 cents. That price has a hypnotic effect: the profit margin of the 99 Cents Only store is twice that of Wal-Mart. Why do text messages cost money, while e-mails are free? Why do jars of peanut butter keep getting smaller in order to keep the price the "same"? The answer is simple: prices are a collective hallucination.
In Priceless, the bestselling author William Poundstone reveals the hidden psychology of value. In psychological experiments, people are unable to estimate "fair" prices accurately and are strongly influenced by the unconscious, irrational, and politically incorrect. It hasn't taken long for marketers to apply these findings. "Price consultants" advise retailers on how to convince consumers to pay more for less, and negotiation coaches offer similar advice for businesspeople cutting deals. The new psychology of price dictates the design of price tags, menus, rebates, "sale" ads, cell phone plans, supermarket aisles, real estate offers, wage packages, tort demands, and corporate buyouts. Prices are the most pervasive hidden persuaders of all. Rooted in the emerging field of behavioral decision theory, Priceless should prove indispensable to anyone who negotiates.
Product details
Paperback: 352 pages
Publisher: Hill and Wang; First edition (January 4, 2011)
Language: English
ISBN-10: 0809078813
ISBN-13: 978-0809078813
Product Dimensions:
5.5 x 1 x 8.2 inches
Shipping Weight: 10.6 ounces (View shipping rates and policies)
Average Customer Review:
4.2 out of 5 stars
99 customer reviews
Amazon Best Sellers Rank:
#209,898 in Books (See Top 100 in Books)
This book don't offer a standard pricing schema that you can use in your business because there is None.The book is a great introduction to the factors that MAY controls customer's interpretations of the price tag on a product or a service. but you will need to following your reading with other books discussing and explaining psychology in general and the behavioral economics specifically.the Author has gone through many theories and explained them very well through the book and listed many examples that mentioned and explained subjects behaviors.
This is a wonderful review of the pricing research that exists in the world . I had a number of preconceptions very much challenged by this book . After reading this and having been able to step back a bit I can see the pricing information at work and my own product lines. Plus the book was downright fun and there was a lot of good humor in the book as well.
The subject of prices is a tricky one. Every person on this planet is, one way or another, confronted to that question. Is this price fair? Am I overpaid or underpaid? How much should I charge for my new product?This book doesn't answer these questions directly, but goes over the basics of how people interact with prices and provide viable strategies to increase your sales and income.
I inherited a small manufacturing company when my husband died in 2011. I've kept it going, and have impressed all my distributors and customers with the excellent upgrades and changes I have made to our products. I'm still climbing a VERY steep learning curve -- I've run an editing company (services) years ago, but never a products company... As a woman, I struggle with pricing and with being "fair" -- which means I sometimes don't charge a fee that I should, or -- as now -- when I should raise prices (to account for all the upgrades I've made), but "feel bad" about it...This book -- despite others' complaints that it is disjointed -- provided me with 'bite-sized,' easy to follow, clear and useful information and examples to guide me in understanding how the company pricing should be managed. I am VERY grateful to William Poundstone for gathering up all this amazing info into one place, and making it a pleasurable read too! I finished it recently, and am beginning again at the first page -- having now gotten a good grounding, I will pull out my actionable steps!I don't KNOW for sure that it helped, but I'll bet it did: I submitted with my application to re-fi my house the current Zillow, Trulia, and USAA "home values" -- setting an anchor high enough (I hoped) that the 'credit committee' would take those prices as the anchor for considering the house value. Then I also printed it out, with the list of things done in the remodel done before my husband's death (which the crappy appraiser in 2012 had ignored; he had said no remodels had been done in 15 years -- which wiped out the $70k we spent in 2008!! and appraised the house way way way low!)( and gave that list -- of prices and remodel changes -- to the appraiser, hoping the 'anchors' would lead him to start high -- and stay high -- so my loan-to-value would allow approval. Seems to have worked!REALLY found this book useful!
Great book for a beginner like me. It makes a nice addition to my library. No problems with the seller, item, nor shipping. Book arrived in great condition.
This is a somewhat underrated book on the subject of behavioral economics. I believe it does a great job at compiling the full gamut of research in this subject and chunks it into short chapters that keep the reader engaged. I would highly recommend to anyone who's already familiar with the primary sources that are referenced throughout the book.
Excellent. Pulls back the curtain sellers use to trick you into spending more, sometimes much more. Well worth reading slowly.
Very interesting book. I feel that it could have been condensed somewhat and I would have liked a summary of key points at the end.
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