Price vs. Perceived Value: How to Set the Right Price for Your Product
Learn how to price your products based on value, not just cost. Discover value-based pricing strategies that maximize profits and customer satisfaction! Why Most Businesses Price Their Products Wrong 💰 If your pricing strategy is based only on cost + profit margin , you’re leaving money on the table . The truth is, customers don’t buy products based on cost —they buy based on perceived value . Think about this: Why do people pay $5 for a Starbucks coffee instead of making one at home for 50 cents ? Why do some brands charge $100 for jeans , while others sell them for $20 ? The answer: Value-based pricing. When customers perceive high value , they are willing to pay more . Let’s dive into how you can set the perfect price —one that maximizes profitability and customer satisfaction . 🚀 Step 1: Understand Perceived Value vs. Cost-Based Pricing There are two main ways to set prices: 1️⃣ Cost-Based Pricing (Old School & Risky) ❌ This is when you set a price by adding a fixed margin ...