I was browsing cars for sale on Craigslist last week, and I cam across a listing stating this:
“I am looking to get at least $15,000
because I owe more on it than that.”
I don’t think a dummer way exists to price a car than to figure out how much you owe and go from there. As a buyer, I could care less how much you owe on your car. Did you pick the slow payment plan over 10 years, or are you paying it off fast in two?
The most irrelevant thing to a buyer is how much you still owe on your car.
Unfortunately, many businesses also price their products this way. They figure out how much it costs to manufacture, then they price it from there.
Those numbers aren’t irrelevant and should be calculated, but the last thing a consumer cares about is how much it costs you to make your product.
At $120 a pair, you won’t find a single woman who buys Lucky Brand jeans and first calculates the cost of manufacturing. All they care about is how they look.
That’s how you price a product.
photo by The Car Spy