Study Apple's Winning Prices

Analysis of the technology giant's pricing strategy is a good investment of time for any entrepreneur.

Monday, October 23, 2017

By Ariel Baños, founding director of Fijación de

Challenge the market: master your Apple-style pricing
3 strategies for leaders to overcome fears and boost profits.

Sometimes fear of making mistakes in pricing immobilize companies and prevents them from creating strategies that maximize profits.  In these cases it is advisable to act with intelligence and what better than to be inspired by an international leader.  The launch of a new generation of Apple iPhone's is an excellent opportunity to rescue some valuable lessons from the company founded by Steve Jobs.

1.  "My prices scare off many potential customers"
    -Prices starting from: An interesting resource to create a sense of "accessibility" in prices, is to use the words "starting from" in the communication of the amounts charged. When we indicate the starting price of a certain range of products or services, this allows us to overcome the fears of many customers who may not even consult us because they have a distorted image of our prices. Apple uses the communication mode "prices from ..." across its range of products. 
    - Final digits: The final digits are also a key detail, particularly in communications aimed at end consumers. Smart use of the number 9 avoids the negative visual impact of a higher price level.  The number 9 continues to be the protagonist of the final digits of all Apple prices.  Even within relatively high amounts, such as Apple's, the benefit of not "jumping" to the next price step, has a psychological impact that favors the company. 

2.  "I have already reached my ceiling, its impossible to charge more"

How can you charge more in a market saturated with competitors?  Apple has found the answer.  It has managed to stand out, and to reflect this fact in its prices, in a market that is characterized by its extreme dynamism and a growing number of competitors.

Read full release (in Spanish).

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