This is one of the biggest pricing myths in the service industry?

This is one of the biggest pricing myths in the service industry.

It is too expensive, must be good...

We have a common belief, More expensive means 100% better quality .

This is not completely true. Sharing some common scenarios:

1. Someone charges higher because of years of experience, positive feedback from clients, rock-solid support system, whose total value is way higher than the price.

2. One charges higher because of the huge demand for their services but has limited availability of time, staff or facility.

3. One charges higher just because, they spend more on marketing, luxurious office and costly staff etc.

4. Another one charges higher just because everybody else thinks, charging higher is directly proportional to quality.

The last two cost-based and artificial pricing will eventually fade away.

Demand and Value-based pricing will prevail for the long term.

Comment below, to share your understanding when deciding your price for your service.

Asked by Edumilestones | 16th of October 2020

Answer

career counsellor voiceofvipin

2 Answers

Fatema M | ...

16th of October 2020 | 2 Likes

Pricing is a very crucial factor in marketing, it is counted in the 4 Ps of marekting. Very often we wonder or stay in dilemma, whether a partiular prodcut or service is worth the price, because we do not actually know the price in genral. One must research to understand the price better and also make a decision not based on the total amount, but at the value delivered and also the market feedback on the same. There is an art to understand the value too, you must have absolute clarity of what you need. This will ensure, you don t burn your finger.

Sanjeev Chandhok

20th of January 2021 | 2 Likes

Pricing basis Value delivered is what ME & like ME all look at & how much is the need for me .Once Need created & value delivered in any product/service ..Price charging becomes comfortable ..

Another Imp point is your target audience .Are you going for Volume or selected Audience will decide pricing ..basis this need to position yourself & deliver value accordingly ..

Rule remain same all across once Audience understand Value he is getting is worth cost incurred You can scale up at any point of time..

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