Stefan Drew - The Marketing Magician

FE, Education & Business Marketing: Quick, Effective, Low Cost Marketing

Stefan Drew - The Marketing Magician
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Category: Pricing

Understanding the Value of Price

Bread at this price proves price isn't a deterrent if you position it correctlyLow Prices Say Cheap & Nasty, Higher Prices Say Quality

 

OK, that a generalisation and there is a place for piling it high and selling it cheap. But generally speaking, people don’t buy on price alone. They also need to trust a brand. For example, if you buy some glue to make a repair, you expect the glue to work. So if you have to choose between a well-known brand and a cheaper unknown brand. There is a risk with buying the cheaper on here. Trusting the brand is important in this situation. The higher price buys you more than a tube of glue. It buys trust as well. 

It’s easy for a retailer or a freelancer to believe that the best way to succeed is to be cheap. But just about every important brand (and every successful freelancer) didn’t get that way by being the cheapest. They offered more than low prices. Low prices will always be beaten by a competitor with lower overheads .. maybe from another country or with better technology. 


Pricing Strategies: Value Based Pricing

What value does your product or service offer? 

What can you, or should you, charge for it?