Manufacturers are struggling with the high energy costs, but retailers shy away from price adjustments.
(Photo: AFP/Getty Images)
Dusseldorf If a shoe manufacturer has to increase its prices due to rising costs, pricing expert Andreas von der Gathen advises them to use this tactic: the manufacturer should not go from 99 euros to 109 euros, but instead go straight to 119 or even 129 euros.
The manufacturer would lose massive amounts anyway, because exceeding the psychologically important price threshold of 100 euros would deter customers. “Then it makes sense to recoup the large volume loss by paying a slightly higher price.” Anyone who pays 109 euros for a shoe is often willing to pay 119 euros or more.
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