Losing the Pricing Sweet Spot
Because of the changes in the Canadian dollar versus the U.S. dollar, we’ve seen a number of price increases over the past few months. Some of you know I have made a case for fixed Canadian pricing, but I want to raise another argument for that which we haven’t considered.
I was thinking of this when looking at my Rose Publishing Pamplet display. Some of our customers have really taken this product line, and for good reason. But with the last price increase, the price jumped to $5.19 CDN. We’ve determined not to change prices on these, because I think the “sweet spot” is $4.99. I’m prepared to stay at the price even as new titles come in higher, plus we have a graduated pricing discount in effect, the more assorted titles people buy. We’ll buy conservatively so that previously-purchased items continue to dominate the mix; at least for a while.
We tend to notice the exchange rate’s effect on pricing on larger price points, such as books going up $1 at a time, but we forget the impact on low-price items can price them out of range for the customer who subconsciously associates a certain ceiling with different product types.
>>> For what it’s worth, the dollar closed today at 81.78, up slightly from yesterday.