Here are the key takeaways from his talk: 1. Humans think in contrasts, not absolutes Our brains are wired to think in often irrational ways, which affects how people view pricing. One insight comes from research on how humans think in contrasts rather than in absolutes. For example, if you were given two bags, you could tell which one is heavier, but it's much harder to tell the true weight of each bag, or if the bags fit within the 50-pound weight limit. Human brains are programmed to work using contrast and context. This tendency to think in terms of contrast and context comes into play in pricing via a powerful concept known as anchoring. When estimating the value of a reasonable range, our brains will adjust upward from the low number, or anchor point, until we get to the bottom-end of that range then stop. Conversely, when we're given a high number, we adjust downward until we get to the high-end of that range, then stop. An example of where anchoring takes place in real life can be found in home values. It's hard to determine the actual value of a home, so asking prices and comparable prices serve as the anchors for home pricing. Based on the concept of anchoring, the first tip is to go big with pricing! The more you ask for, the more you get. Think about how you might leverage the pent-house suite at your hotel, or present options with particularly high prices in order to affect your customer's perception of what the true value of your products should be. Get the full story at rainmaker