Picture your satisfied customer sitting on a three-legged stool. If all three legs are the same length, your customer sits upright and comfortable. If either leg is shorter or longer than the other, your customer will not sit comfortably, and is likely to slide off your stool and right out your front door.
The three legs on a satisfied customer’s stool are:
Your price should be justified by the quality of your product and the adequacy of your service.
A customer cannot reasonably expect your company to have the lowest price, the highest quality, and the best service. That is an unrealistic expectation.
You cannot reasonably expect to fetch the highest price without the finest quality and the best service. That also is an unrealistic expectation.
In all cases, these three essentials of a customer transaction should balance.
If you charge a higher price because your product or service is a quality one, then you must provide service to match.
Don’t be afraid to charge a higher price if your product or service deserves it, but be sure your marketing communicates your quality and service to your customers.
Avoid reducing your price just because your competition does. That is a formula for disaster.
Focus instead on quality and service, and price your product or service accordingly.