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Think twice
before relying
on supply and
demand
Wine 1
Priced at $5.00 – received an enjoyment rating of 2.25 out of 6.
Priced at $45.00 – received an enjoyment rating of 3.5 out of 6.
Wine 2
Priced at $10.00 – received an enjoyment rating of 2.5 out of 6.
Priced at $90.00 – received an enjoyment rating of 4.1 out of 6.
THE INSIGHTS
1. The intuition that lower prices will increase unit sales is
flawed. Beware of relying on intuition.
2. The laws of supply and demand do not apply as well as
many think. Beware of traditional economics.
3. Price is as much a perceived measure of quality as it is a
factor impacting on the perception of value.
QUESTIONS TO PONDER
1.With the right strategies in place, how much more could
you increase the price of your product without diminishing
sales?
2.What are the expectations of your customers and potential
customers. What is it worth to them to get exactly what
they want?
3.Which product categorisation might best drive the
perception that your product offers superior value and
should attract a premium price?
To find out more - visit...
www.djohncarlsonesq.com
Or email me at...
johnc@djohncarlsonesq.com

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Think twice before relying on supply and demand.

  • 1. Think twice before relying on supply and demand
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Wine 1 Priced at $5.00 – received an enjoyment rating of 2.25 out of 6. Priced at $45.00 – received an enjoyment rating of 3.5 out of 6. Wine 2 Priced at $10.00 – received an enjoyment rating of 2.5 out of 6. Priced at $90.00 – received an enjoyment rating of 4.1 out of 6.
  • 11.
  • 12. THE INSIGHTS 1. The intuition that lower prices will increase unit sales is flawed. Beware of relying on intuition. 2. The laws of supply and demand do not apply as well as many think. Beware of traditional economics. 3. Price is as much a perceived measure of quality as it is a factor impacting on the perception of value.
  • 13. QUESTIONS TO PONDER 1.With the right strategies in place, how much more could you increase the price of your product without diminishing sales? 2.What are the expectations of your customers and potential customers. What is it worth to them to get exactly what they want? 3.Which product categorisation might best drive the perception that your product offers superior value and should attract a premium price?
  • 14. To find out more - visit... www.djohncarlsonesq.com Or email me at... johnc@djohncarlsonesq.com