American Pickers

     I watched the tv series "American Pickers" the other day and I was noticing a lot of chapter 12 price management things occuring during the show. American Pickers is Mike and Frank going aroundthecountry trying to buy anitique items from local people. While they are out on the road, they come up against a lot of price management events.
     Demand-based Pricing - Pricing based on the level of demand  for the product. The owner of the antique, that Mike and Frank are looking for, has the upper hand. He knows that these men want his products but can't put almost any price he wants because the guys want it. But a price too high and that will turn off the guys from buying it.
     Differential Pricing - Charging different prices to different buyers forthe same quality and quantity of product. The owner of the antique can probably judge how much they guys are willing to pay for an item and he can probably place his price based on that.
     Negotiated Pricing - Establishing a final price through bargining. When a price is tossed into the air by either theguys orthe owner, then the men can negotiate a price until they can agree. If one side of the party is being and won't go any lower of higher, then they will most likely be no purchasing. Usually the men argue for a while because the owner is trying to get the most he can while Mike and Frank are trying to get it for as low as they can.
     Price Skimming - Charging the highest possible price that buyers who most desire the product will pay. When Mike and Frank pick out something and ask if it is for sale is a clue right away for the owner becase thise shows that the guys are interested in soemthing. This allows the owner to quickly judge and see how much he is able to get forthe item the guys want.
     Bundle Pricing - Packaging together two or more complementary products and selling them for a single price. This technique works very well for Frank when heis having trouble buying something. If the owner is being stubborn on a price, then Frank will gether some other items that he likes and puts everything in a pile. then Frank will offer on price forthe whole "bundle" of things. This usually works are for him.

Are there any shows that you can think of with Price Management? Or are there any more terms that I missed from the show American Pickers?

Psycological Pricing

This article talk about the psycological pricingthat customers take into consideration. They are trying to think in the eyes of their customers. Trying to figure out what they think when they are buying something. The firstthing thatthey talk is pricing positioning. When a business putsout a new product, they need to think about what the price should be. Obviously they need to make a profit, but they want to price it lower than their competitors because people will gravitate toward the lower of the two products. If you price just a little above the market average, then this will tell the customers that their is a little more quality in the product. This relates to premium pricing from our text book (even though premium pricing is about a product line). The next thing that they talk about is "popular pricing points." This is a common price that most people will have on them. The example that they give in the article is something that is priced under $20 because a $20 bill is the most common bill that people carry about on them. Since its under $20, then people are more likely to buy it because they can afford it right now. Just like the dollor menu, people usually have at least a few dollars on them. This allows them to buy a meal. The last thing thatthey consider is fair pricing. This is mostly when a business puts out a product and they don't have any competitors. This makes it so that they aren't going to charge a ridiculous price because it is the only one out there. This still makes it "fair" for the customers because nobody is going to buy something when they know that is way over priced.
     I feel as though positioning pricing is the one that people putting out the product consider the most. They might be unsure of what they charge for their product so they might do some reasearch and find out what other businesses charge and go from their. This allows them to be "with" the competition, "lower" or "higher" than the competition. This will give them a leg up because if it is lower, then people are more likely to go for the cheaper one. If it is higher, then people might think that have more quality.

Which one do you think people consider the most?

In response to Jackie's "Many discounts, Few deals."

There is a public understanding that deals aren't really deals. People are being tricked into thinking that when they see the two for $20 deals sign, they are thinking that they are getting a deal because if they had bought it at a different time, they would have had to pay full price. Since the market is down and people are struggling with money issues, them getting a deal could be a better thing for them. That is why people are thriving off of those deal signs. I'm sure the marketing people know that people right now can't afford NOT to take the deal.
    I'm not going to lie, I am a sucker for those deal signs. If I'm getting a deal, then I think I am saving money and I love to save money along with the rest of America.