Mark Everett Johnson

Mark Everett Johnson
The Price Is Right … or Is It?

Similar market pressures impact consumers' perceptions of the value of virtually every product or service, yet many direct marketers change their prices infrequently, if at all. [...] do you need to cut prices in order to win more orders from cash-strapped consumers, or do you need to raise prices to keep up with rising costs? (Which reminds me, I need to send in the $50 rebate on my cool, new phone before I lose the rebate slip or the UPC, or forget about it entirely as the marketer is hoping.) Other effective ways to reduce the perceived price include installment billing and, in the case of subscription marketing, per-issue or per-month pricing. A classic example of reducing the perceived price in consumer marketing is selling automobiles based on monthly payment. Author of "46 Ways to Raise Prices without Losing Sales!," "The Tao of Pricing" and "Pricing Psychology Report," Jensen has discovered many instances when test results defy conventional wisdom and create profit-building opportunities. Of all the variables that go into the success or failure of any marketing campaign, price is perhaps the easiest to test - and often proves to be the easiest way to boost profitability.