This jewelry store employee accidentally marked up some turquoise pieces they were struggling to move to twice the price instead of making them half off. Guess what happened?
The turquoise pieces sold out by the next day.
How the heck did it happen?
The shop catered mostly to tourists who had no knowledge of the value of turquoise. They compensated by using a mental shortcut, and the trigger feature for that shortcut is high price = high quality.
I think this is important for founders to consider when building their pricing strategy.
Having the lowest price rarely conveys that you have the most expertise, which often casts doubt on your ability to get the job done at a satisfactory quality level.
The sweet spot, IMO, is to be priced just high enough to where you are perceived as high-quality, yet still the affordable option compared to those at the extreme high end of the price spectrum.
If you’re worried about being able to justify your price, start creating authority-building content consistently on LinkedIn.
Schedule a free consultation with me and I’ll walk you through how to create content that positions you as an authoritative expert and justifies your price tag.
Master Tailor
9moI'm interested 15 years experience