Do you feel a pang in your heart when you over charge your offer?
This article came across which talks about the view in a digital photography context.
Imagine you wear a pair of boots which costs you Rs.15,000/-. These pair must not have cost more than a few hundred rupees to make.
1. Value – You do not pay the price for the product – you pay the price for the value the product represents. Another person who has the same pair of boots immediately connects with you because of the value.
2. Feeling – What came into you when you saw your first bicycle? What did that seat tell you? What did the treading on the tyre convey? Does your product compare to that feeling?
The traditional view talks about cost price and a sales price. Am I making x% profit? Instead, you could price it the other way around. Fix a number for the price tag on the product. Work backwords till you reach your Cost Price.
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