I was having lunch with my friend Chris Yeh the other day, and he mentioned this phrase I hadn’t heard before. I don’t know why, but it struck me as pretty funny.
“Flinch pricing: Attempting to find the highest possible price the customer will bear. If you’re trying to sell a software product, you might say the following to your customer:
“The price is $1,000…per application…per CPU…per month…for the ongoing maintenance…etc.”
You stop when the customer visibly flinches from the pain, and then negotiate down from there.”