The American economy may be seeing an improvement, but I just had an interesting conversation with a consumer. Her comment was the consumer has “Sticker Shock”. I asked her to explain what “Sticker Shock” was. As you have probably gathered it is the shock when the consumer sees an increase in the price. This indicates how critical it is that we as retailers understand the principles of price barriers and price points. I worked with a retailer yesterday and was analysing there pricing strategy, my first reaction was that they needed to increase the price of their products as they were working on the 50 cent price point. I advised them to increase it to the 85 cent price point. Once they get over the price barrier “Sticker Shock” sets in. Below the price barrier there is less sensitivity to the Sticker Shock”.