Thus begins a fascinating article at Bloomberg Business Week. Pricing strategies like these are especially important for information goods and in a world of well-informed consumers. In fact, if anything, the article overemphasized the psychology of pricing and underestimates how these strategies can be very effective even when consumers are entirely rational.
Next time you're sitting at an airport bar and hear two businesspeople debate whether Apple is a technology or design company, chime in: "Nope. What Steve Jobs sells is pricing."
Pricing? You bet.
Jobs is a master of using pricing decoys, reference prices, bundling and obscurity to make you think his shiny aluminum toys are a good deal. Apple's Sept. 1 announcement of new products was a classic example.
The popular iPod Touch media player has been revamped at three price points - $229, $299, and $399 - all costing more than the iPhone, which does everything the Touch can plus make phone calls.
What gives? Watch Apple, and you can learn pricing tricks for your own business.