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7 steps to a premium price point

May 10, 2018

 

This is certainly not meant to be an exhaustive list, but in the consumer durable goods universe this is a very good place to start when considering launching a product that has potential to be priced at a premium.  These rules have served me well over the years…

  1. Be the first to solve a problem - Identify unmet needs and meet them in a unique way.

  2. Put yourself in a category of one.  If your competition cannot match the most compelling aspect of your product offering, then it is not necessary to compete on price or match them “feature for feature”

  3. Tell your story in a unique and compelling way

  4. Have a solid channel strategy that eliminates conflicts and discourages a “pricing race to the bottom”.

  5. Don’t let your retailers dictate your price points.  The consumer should determine price threshold, not the retail buyer.

  6. Don’t feel like you must match a competitor’s retail price.  A higher price point can be an advantage – you are saying to the consumer that you believe you are worth it.

  7. Don’t try to justify a higher price point with branding, design, or CMF alone.  Make the product beautiful, but make sure you are also creating more concrete reasons to step up.

     

     

     

     

     

     

     

     

     

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