Pricing Tricks That Work

An article I read in Sunday’s New York Post titled “Fool’s Gold” is about “how retailers deceive you into paying more money for less stuff.” While I don’t think most of us want to deceive, there are some interesting techniques that consumer marketers use that we could learn from. For example, a product priced at $1000 (say a TV, like in the article) with a $200 rebate, has more appeal than an $800 priced product. The reason is that the perceived value of the $1000 priced product is higher.