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The Psychology of Pricing

by Chuck McKay | Dec 12, 2006 | Budgeting, Pricing, and Return on Advertising Investment (ROAI)

The following stories are true. The author personally witnessed each as it unfolded. There is a commonality, which will become obvious. 1. A young man spends $400 on a new set of tires for his car, and then promptly totals the car. He pulls the new tires from the car...
Can Breakeven Analysis Predict Your Coupon Success?

Can Breakeven Analysis Predict Your Coupon Success?

by Chuck McKay | May 21, 2006 | Budgeting, Pricing, and Return on Advertising Investment (ROAI)

Pretend with me that you own a snow cone cart (or as they call it in the South, “shaved ice”). You’ve mentioned to a friend that your sales are ok, but that your business isn’t growing. She suggests that since people love a bargain that you distribute a “buy one get...
Do You Have To Drop Price To Increase Sales?

Do You Have To Drop Price To Increase Sales?

by Chuck McKay | May 7, 2006 | Budgeting, Pricing, and Return on Advertising Investment (ROAI), Persuasion / Power of Words

In 1985 while living in Florida I paid $1,000 for a 1976 Buick Century Wagon. The wagon was a bit older than I would have selected under other circumstances, but the previous owner had the most incredibly detailed maintenance records on the vehicle. I assumed...
One Easily Remembered Point

One Easily Remembered Point

by Chuck McKay | Sep 5, 2005 | Ad Writing / Copywriting, Advertising / Marketing Strategy, Budgeting, Pricing, and Return on Advertising Investment (ROAI)

One of the things that too many small businesses do when they advertise is to try to pack the ad with everything that could possibly be of interest to any potential customer. After all, advertising is too expensive to waste any opportunity to sell everything to...
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