Pricing

Downsize Features Besides Price

You can change prices without changing the numerals.

Nick Kolenda
Updated on
$3 box of fries where price stays $3, but the box gets smaller

Some markets are highly price sensitive.

In these scenarios, you might need to adjust a less noticeable feature, like size. Lower costs will increase your margins without alerting people to a negative change.

If you downsize physical size, reduce all three dimensions: height, width, length. Changing a single dimension is more noticeable (Chandon & Ordabayeva, 2009).

But obviously, be transparent and use your judgment. Don’t take advantage of customers.