The price that a customer is willing to pay for a product is a function of two factors:
- The customer’s needs which the product meets
- Our psychological biases as humans
The first is objective. Changing it requires changing your product altogether or its important features.
The second is subjective. It can therefore be influenced by factors like product positioning and pricing strategies.
Here’s a great post which highlights several pricing strategies that make customers more likely to buy a product at a target price point.
Also published on Medium.