A simple take on prices is that they are an obstacle toward the purchase of a desired product or service. Companies, therefore, see a legitimate need to reduce “friction” in the transaction, which they accomplish by reaching into a seemingly bottomless bag of tricks, ranging from the subtle to the egregious.
Talking to Your Customers About Prices
Even if inflation means you have to charge more, don’t try to hide it from your customers.
March 31, 2022
John Scott/Getty Images
Summary.
Companies often have difficulty talking with customers about prices, because price is often an obstacle to a sale. That leads some companies to use pricing tricks that conceal the true cost or otherwise mislead customers. That’s a mistake. This article offers guidelines companies should follow as they rethink pricing strategies, particularly in a time of high inflation.