The intuitive logic is that customers will always buy at a lower price. But don’t you believe this old assumption because it simply is not true.
The value of many products actually increases with an increasing price. Consultants, luxury goods, and engagement rings are all examples of this seemingly backward pricing phenomenon.
Imagine the disaster when the romantic but frugal boyfriend wheels in a 55-gallon drum on a hand truck. “I know you love that fancy French perfume honey, but this smells exactly the same and now you’ll have enough for a lifetime.”
If our hapless suitor presented his gift on the evening of Valentine’s Day we can just imagine who he’ll be with later that night — nobody.
By establishing a powerful brand that is laser-focused on your buyer you can actually use pricing — and higher pricing — to make your product more desirable than the competition. And with the extra money you make you’ll be able to put more time, effort, and resources into doing an even better job for your customer which creates a win-win-win situation for everybody.