Apparently cereal makers were losing money b/c they priced their product at a much lower price point than, at the time, the regular breakfast of bacon and eggs.
They hired a consultant who pointed out they could raise their prices as long as it was lower than bacon and eggs, make more money and still be cheaper.
2. Raising prices
There is a story in one of the pricing/economics books about a store keeper who told her assistant to halve the price of jewelry that wasn't selling. The assistant misheard and doubled the price. The jewelry immediately sold.
3. The shelf that always sells
In the book about Shopsin's in NYC, the author and owner mentions that certain shelves in a store will sell out of whatever is on that shelf. Regardless of price, product, time of year etc.
Apparently, putting things right by the front door in supermarkets is the opposite: very few people buy anything that is there. I noticed that one of the Real Housewives of NJ had her food product there and thought to myself: someone is giving you bad advice and/or humoring you by putting your product there.
1. Cereal
Apparently cereal makers were losing money b/c they priced their product at a much lower price point than, at the time, the regular breakfast of bacon and eggs.
They hired a consultant who pointed out they could raise their prices as long as it was lower than bacon and eggs, make more money and still be cheaper.
2. Raising prices
There is a story in one of the pricing/economics books about a store keeper who told her assistant to halve the price of jewelry that wasn't selling. The assistant misheard and doubled the price. The jewelry immediately sold.
3. The shelf that always sells
In the book about Shopsin's in NYC, the author and owner mentions that certain shelves in a store will sell out of whatever is on that shelf. Regardless of price, product, time of year etc.
Apparently, putting things right by the front door in supermarkets is the opposite: very few people buy anything that is there. I noticed that one of the Real Housewives of NJ had her food product there and thought to myself: someone is giving you bad advice and/or humoring you by putting your product there.