Photograph by Clem Onojeghuo
WHAT’S THE RIGHT PRICE?
Well, it depends on the value you give to your customer. Value is often something we misunderstand. As humans, we feel value is a simple calculation: ‘x’ cost-of-goods + ‘y’ margin = ‘z’ price. But, it’s not so simple.
Value is added in many ways. It’s the way you speak to your customer, the way you hold your customers hand down his or her journey, the way he or she feels about the product, etc. Value isn’t something inherent to the product; it’s something we create every day.
I know this feels like a romantic understanding of value, but it’s true isn’t it? We want to pay more for a better experience. Actually, paying more often enhances the experience.
So, when you’re trying to determine price. Think for a long while and put yourself in your customer’s shoes. How does he or she feel about the experience you’re creating? Don’t sell yourself short. You’ve worked hard and your customer appreciates it. Now, the difficult part: appreciate it yourself.