Brand selling premium products should justify their pricing by enhancing their customers’ buying experience before, during and after the transaction.
This article states that pricing is often a challenge for businesses, especially if they are selling a premium product. Setting a higher price carries a risk of losing sales to competitors, whereas under-pricing lowers the product’s perceived value.
Providing an example of Sony and Apple’s premium products, the author argues that they aren’t competing with existing products at a particular price point. They are “justifying” their price through quality and performance for a niche, lucrative market.
Premium product sellers should exceed yardsticks used to measure customer expectations. Their products should validate their price in terms of function, features and form, along with attention to details, and quality of their advertising, communication and website.
[5 minute read]