In this article, the author explains the psychological phenomenon of “loss aversion” and how it can be applied in pricing strategy. Raymond Augustin is a recognized thought leader, specializing in pricing strategy. He has, as the COO of Virtual Procurement Services (VPS), provided guidance to dozens of healthcare organizations and tribal gaming operations on purchase price methodology and analytics.
This article describes lessons learned from a pricing professional’s several ride-alongs with sales reps in many industries. Although these trips were all unique in many ways, there were a few important commonalities that re-shaped the author’s thinking on the role pricing should play in a sales relationship, which he summarizes here.
The whole point of negotiation is getting what you want while having the other person walk away thinking that they got what they wanted as well, as the author explains.