In this week’s Empire Building Kit (Week 14) we took a look at pricing and the concept of price “buckets,” or the acceptable range of pricing for products. Sticking within this range is usually a smart idea, unless you’ve developed a value-add to your product that makes it exceptional in your market.
While it is probably not a secret that spending money is most often an emotional and not rational activity for people, I found it interesting to learn that within price tiers, most people don’t differentiate between low and high prices; i.e., if a customer is ready to spend 60K for a car, they probably won’t feel much more “pain” if the price is 70K.
(Of course, both of those figures sound painful to me, but I’m not in the position to buy a car anywhere near that price “bucket!”)
I will, however, continue to give careful thought to how I price my products, be it jewelry, designs or my studio teaching.
How about you? Are you pricing your product in the correct “bucket.” Are you losing out by pricing at the lower ends of your pricing tiers? If you’d like to read more about the Empire Building Kit (or how to build a lifestyle business in one year by doing one thing every day), please click here.