There is no such thing as a high price to consumer

Price is just what a company believes their target consumer will pay for their offering.

When a target customer is buying a product, what they are looking for is the most value they can get from the dollar that they have.

Pricing is all about value

• A company or entrepreneur should never be driven by only costs and profit in setting a price
• When Pricing, it is critical to look at the needs and the value they receive from the company’s total marketing offer.

For example,In the airline business customers in one flight pay different prices depending on the value they seek. Some seek luxury and hence pay for first class, others are just looking for extra leg room so they pay for it and majority just want to get from point A to be B at the lowest cost to them.

It is critical to ask the following questions when pricing:

• What need or want are the target customers seeking to fulfil?
• Can the company afford to fulfil this need or want?
• What value perceptions can be created around fulfilling this need or want that target customers will find more valuable than the price being offerred?
• What price are customers willing to pay for and can the company fulfil this price by encurring a certain target cost that will satisfy its shareholder value objectives?

it is very important to come up with a value proposition that is far greater than the price . If you can show the customer the value he is getting is higher then they will always pay the price that you ask.

Use the competition to show case value for example if you are offering more quantity for a price that is equal to what the industry is charging, then customer will see more value.

always add value to your customer