G'morning David,

 DW> Obviously, prices have little to do with values.

A `marketing truth'.

I consulted over the introduction of Gladwrap in NZ for Union 
Carbide in my youth.  In one pilot survey, we let housewives use 
the wrap for a week before asking for their estimate of price,  
and recommended setting the initial price at one SD above their 
mean expectation.

The UC accountant's cost-plus pricing came in at 1 SD below the 
mean,  so we ran an experiment to see which price worked best - 
and the +1 SD setting triumphed.

The product launched splendidly at the higher price - and then 
withstood several price attacks by competitors who folled UC into 
the NZ market.  35 years later, Gladwrap is still strong here and 
priced high.

The economists' `rational man' just doesn't exist in the lay 
public - but grocers' daughters know how to profit from those who 
keep faith in that dismal `science'...

Miles. 
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