Price Tag Confusion for Small Business
by Stuart Livesey
Could your pricing structure actually be turning customers away?
Price partitioning occurs when a business charges a basic price for an item and then offers additional services for additional fees.
I guess the simplest example of price partitioning would occur if your small business charged $xx.xx for an item and then showed that an additional sum would be added for postage and packing.
But could it be that by using that type of pricing policy you are actually losing sales and driving customers away?
Some recent research has shown that partitioning prices really could be costing you sales and the research is discussed here at Fixing Price Tag Confusion
And thanks to the Business Pundit for the link to the study
