High Price Strategy Simplified
Pricing often confuses startups and creative entrepreneurs. Humans naturally look for other products within a similar range or category to triangulate the perceived value of a product versus it’s price.
As startups and creative entrepreneurs we do this as well in the product design phase. We look to our competitors to build a framework to work within. This approach can have good and bad results.
Charging high prices is not the way to become successful. Being the first to establish the high price position with a valid product story in a category where prospects are receptive to a high price product is the secret of success. It then follows that you should find a niche where prospects are conditioned to pay & accept high prices.
In Positioning Strategy pricing is as much of a feature of the products the benefits are. By working backwards from the prospects mind and the perceived value of your market and niche within that market is the best place to start. Here’s the simplified version:
High Price Strategy Simplified
- Establish he high price position / market / segment
- Have a compelling story that speaks directly to the prospect, and all the emotional hot buttons and mental triggers.
- Enter a market category where prospects have been conditioned to accept high prices.
- The place to establish the high price is in the ads, not in the store or website. The price (high or low) is as much a feature of the product as anything else.
- What your ads need to do is to clearly position your brand in a particular price category, and therefore quality. The prospect should mentally recall the price ladder where you reside, based only your price.
Positioning: The Battle For Your Mind is a book written by Al Ries and Jack Trout. This book defined a new approach to communication, and may have defined the new era of marketing called “Positioning”. This is a book is as much about marketing as it is human psychology.