Dropping your prices to get more customers may not lead to more profit. While this approach may have benefits in the short term, pricing psychology research reveals that lowering your prices too much can negatively impact your customer satisfaction scores and brand perception.
Years ago, I had the chance to learn valuable lessons about pricing psychology from Brad Fallon, a lawyer-turned-entrepreneur with whom I interned as a college senior.
Brad and his wife co-founded MyWeddingFavors.com in 2004. Within two years, they had turned a $2,000 investment into $32 million.
