How do you justify value-based pricing?
Asked 5 years ago
Hi, I can't seem to wrap my head around value-based pricing. I understand that making a profit is essential. I can't help but wonder how one justifies asking the highest possible price to stick the money in your pocket. How is it ethical?
Brian Cain
Tuesday, February 22, 2022
Value-based pricing means charging an extra amount for the feature your product offers. These are your product's differentiators that set it apart from the best alternatives. Suppose your company sells air conditioners and introduces a new model with a more efficient air purifying feature than the competition. You can set the higher price of your AC because of this extra feature. So, value pricing is justified if you set your product price based on its unique features.
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