Twelve lines decide your price image. Four hundred decide your margin.

Buyers hold accurate reference prices for a small fraction of what they buy from you, and most pricing decisions ignore which fraction.

By Steve 5 min read
Abstract bridge artwork for Twelve lines decide your price image. Four hundred decide your margin.

Most price changes are applied as a percentage across the board. A 3% uplift on the list, or 5% off to win the account. The logic is administrative: it is the only change that can be made in an afternoon without argument. The problem is that it treats the buyer’s price knowledge as if it were evenly distributed across your range, when in practice it is concentrated in a handful of lines and close to absent everywhere else. This is the mechanism behind price image: the buyer’s overall sense of…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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