Saturday, January 16, 2010

Priceless


Have you noticed that supermarkets are designed so that you go through them counterclockwise? Ever notice that menus in sit-down restaurants don't have prices that end in $.99? Ever think that a TV with a price tag that says it's $800, marked down from $1,000, must be better than another TV that's $800 without a discount?

These are among the topics I discussed yesterday on WHAS/Louisville with William Poundstone, author of "Priceless: The Myth of Fair Value and How You Can Take Advantage Of It." He explained how companies decide how much to charge you for everything you buy, with the help of pricing consultants. We also talked about companies that have figured out how to keep the packaging and price the same while giving you less.

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