Setting The Price Of Products Or Services You Sell Higher

[Vampa]

It may sound counter-intuitive but fact is most people associate higher prices with quality. An attempt to undercut your competition by selling anything at a lower price could drive away some potential customers because they'll think what you are selling is of inferior quality compared to what your competitors are selling. The hard work would be getting the customer to see the value of the products or services you sell in order for them to pay a little more for them.

If it works, you'll be making more money even if you don't get as many sales as your competitors do.

 

[fcuco]

Yeah, that's the good old premium pricing strategy, it is also called the "skim the cream" strategy. It is a similar concept to the "creaming" strategy but they are not exactly the same and are often confused: The creaming strategy is a temporal measure that you take inflating your prices so you can get even with fewer sales, this usually targets early adopters, you then lower the price. The premium pricing is constant and is used to position your product as a luxury item. The main example of this? diamonds, diamonds are not worth as much as the prices they go for, it is a completely inflated market. Another example are clothing brands, most brands are owned by the same parent company and are manufactured on the same factories using the same materials, yet a simple label determines if this new shirt is now a luxury item or an affordable one, then each shirt goes to a different store.

It actually works, just be careful and don't over do it.