Remember: price is different from value
Posted: Thu Mar 27, 2025 4:44 am
Now that you know the different pricing strategies, we must remind you of something very important: although we use these terms synonymously on a daily basis, price is different from value.
As we've seen, price is how much you charge for a given product or service. It's what will allow you to cover production costs and make a profit in the end, regardless of the type of pricing you choose.
Valor, on the other hand, goes beyond that.
Imagine, for example, that you need to buy a pair of jeans. You go to a department store and find hundreds of them lined up, seemingly made of the same type of fabric or with some difference that can only be felt by touch. But the price difference between them is huge: you'll find one at the top of the rack for $50 and another in the middle for $1,000.
Chances are the fabric quality of one isn't 20 times inferior to the other, but you still opt for the more expensive one. Why? Because it was made by a brand you trust, or because it's trendy, or because it offers better after-sales service, a loyalty club, etc.
Note that, in this case, "value" was more important than "price." Therefore, keep this aspect in mind when defining the cost of your product or service. Offer efficient after-sales service and demonstrate it in practice. In short, add value to your product.
Final considerations
Knowing how to set the correct price for products and services is essential chinese overseas america data for any business.
A company's profit directly depends on the equation involving all its costs, whether production or operational, and the price charged for what it delivers.
Although there are simple ways to set a price, these days you must consider many variables. Simply arbitraging a price based on your expected profit is becoming increasingly difficult, given the growing competition and increasingly demanding consumer market.
As we've seen, there are different ways to set the price of a product or service. All of them are applicable in isolation, but the pricing strategies that have proven most effective are those applied in conjunction with market reality.
https://protagnst.com/estrategias-de-preco/
Hire sales consulting
Now that you know the different ways to set prices, how about we help you expand your sales? Protagnst specializes in lead generation and customer acquisition for business-to-business (B2B) deals. Fill out the form below so we can work together to design the best strategy for your business.
As we've seen, price is how much you charge for a given product or service. It's what will allow you to cover production costs and make a profit in the end, regardless of the type of pricing you choose.
Valor, on the other hand, goes beyond that.
Imagine, for example, that you need to buy a pair of jeans. You go to a department store and find hundreds of them lined up, seemingly made of the same type of fabric or with some difference that can only be felt by touch. But the price difference between them is huge: you'll find one at the top of the rack for $50 and another in the middle for $1,000.
Chances are the fabric quality of one isn't 20 times inferior to the other, but you still opt for the more expensive one. Why? Because it was made by a brand you trust, or because it's trendy, or because it offers better after-sales service, a loyalty club, etc.
Note that, in this case, "value" was more important than "price." Therefore, keep this aspect in mind when defining the cost of your product or service. Offer efficient after-sales service and demonstrate it in practice. In short, add value to your product.
Final considerations
Knowing how to set the correct price for products and services is essential chinese overseas america data for any business.
A company's profit directly depends on the equation involving all its costs, whether production or operational, and the price charged for what it delivers.
Although there are simple ways to set a price, these days you must consider many variables. Simply arbitraging a price based on your expected profit is becoming increasingly difficult, given the growing competition and increasingly demanding consumer market.
As we've seen, there are different ways to set the price of a product or service. All of them are applicable in isolation, but the pricing strategies that have proven most effective are those applied in conjunction with market reality.
https://protagnst.com/estrategias-de-preco/
Hire sales consulting
Now that you know the different ways to set prices, how about we help you expand your sales? Protagnst specializes in lead generation and customer acquisition for business-to-business (B2B) deals. Fill out the form below so we can work together to design the best strategy for your business.