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Exceeding demand inevitably affects prices and competition. [iStockphoto]

Pricing is one of the best ways to drive cash. One of the reasons we get pricing wrong is that we fail to understand that we are selling to people. This is even for those selling business-to-business.

You are not selling to a company but rather to a person selling a person. And one of the things we know is people are not logical; they are psychological.

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