Re: AN: GuruGram #41 ...

From: Don Lancaster (don_at_tinaja.com)
Date: 12/26/04 

Date: Sat, 25 Dec 2004 20:19:08 -0700

Bob Niland wrote:
>
> > "There is deeply ingrained cultural resistance to
> > breaking a twenty or otherwise crossing currency
> > denomination thresholds. Common "don’t go there"
> > values are twenty, one hundred, and two hundred dollars.
>
> FYI, these are also known as "price points". For
> consumer goods, the values vary with the product.
>
> If you're selling industrial products (as I have), the
> factors are not entirely cultural. Common "signature
> authority" amounts come into play.
>
> Keeping the price of a product below, say, $500, can
> dramatically increase sales, because first-level
> managers can often approve purchase orders for that
> amount. Any higher, and it has to go higher for
> approval. And sometimes what goes up doesn't come down.
>
> Does this have anything to do with eBay auctions?
> Probably not.
>
> --
> Regards, Bob Niland mailto:name@ispname.tld
> http://www.access-one.com/rjn email4rjn AT yahoo DOT com
> NOT speaking for any employer, client or Internet Service Provider.

One marking machine company I once worked for charged $490 for a new
unit and $2240 for a refurb or rebuildof an old one. They got far more
refurb and rebuild orders because they could be signed off as
maintenence rather than new capital equipment.

Refurb often consisted of transferring the nameplate. 

-- 
Many thanks,
Don Lancaster
Synergetics   3860 West First Street  Box 809  Thatcher, AZ 85552
voice: (928)428-4073 email: don@tinaja.com   
Please visit my GURU's LAIR web site at http://www.tinaja.com
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