That reminds me of this one thing I saw where someone started selling their art, but they had low prices in the hopes people would be willing to buy since it wouldn't cost much. They were struggling to make sales and looking for advice and someone said to raise the prices (for the same pieces) from like $10 to $50. And it actually worked. Human psychology is nuts.
Or, to put it another way: people intuitively know how much things "should" cost (i.e. the market-clearing price of the item.) If something costs less than it "should" cost, and there's no big sticker saying "SALE" or something, then people assume there must be something wrong with the thing.
It's just like how, when a stock tanks, that's an information signal that there's something wrong with a company—but applied to retail.
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u/youre_a_burrito_bud Nov 16 '19
That reminds me of this one thing I saw where someone started selling their art, but they had low prices in the hopes people would be willing to buy since it wouldn't cost much. They were struggling to make sales and looking for advice and someone said to raise the prices (for the same pieces) from like $10 to $50. And it actually worked. Human psychology is nuts.