Does the low price always win the sale?

Do customers always want the lowest price? Not always, it seems.

A software company selling to both consumers and professionals priced their software at $79 per copy, which they thought would appeal to both segments. But it appealed to neither: consumers found it too high, and it communicated "not a serious tool" to professionals.

Solution: Focus on the professional market and raise the price to $129. When the company did so, sales soared. Lesson: despite your intuition to the contrary, the best price is often not the lowest price.

Source: Brown, Dennis, "10 Common Pricing Mistakes," Atenga, p. 3.