The common rule is: “The higher the quality, the higher the price”. Yet it works backward as well.
In the experiment of German neuro-economist Hilke Plassman, participants drank identical wine with different price tags: 10$ and 80$. As the result, the expensive wine “tastes” much better!
- Price normally triggers the pain area in the brain.
- It is also a signal to evaluate product quality.
- High price increases subjective quality.
Therefore, if you want to grow sales (or sell out remaining goods), increase price.
Be cautious: it works only if the product has a wide range of price (e.g. wine). It will fail with deodorants and shampoos. What helps: a cool design, a great story, and exclusive access to the product.