#2 Use psychology to determine your ideal product pricing.
Our thoughts are readily manipulated into making decisions that are not always in our best interests. These decisions can sometimes be detrimental to our ability to maximize utility as consumers. The concept of value, for example, is a relative phrase that logically has no absolute value. It's a well-known truth that, depending on the context and circumstances, a "fair" price for the same service or commodity can vary significantly. As a business owner, you must take advantage of this psychological flaw to increase the perceived value of your goods. You can utilize a technique known as the decoy effect. When done correctly, it has the potential to improve sales.
