Questions

We are launching a new service for the bride/wedding market. There is demand for this service, however, it does not yet exist in the market. For that reason, the customer has no price reference to compare from and then decide. How do we convince customers we offer a fair price and reduce price sensitivity?

You need to consider the first two rules of pricing here. Rule #1 - all value is subjective. That means while you think your service is fantastic, nothing like it, etc., ultimately it is the customer that determines value. They are the single point of failure for your product. The second rule of pricing is all value is contextual. That means you create and control the environment or context in which you product commands the price that it does. If you want to create a "fair price" environment, you need to communicate that to customers as part of your pricing communications strategy. This is easier to do when using cost-plus pricing than it is with value-based pricing. Have a look at EverLane's About page & infographic on their t-shirt pricing for some inspiration, and feel free to arrange a call if you want to chat further - Jon


Answered 5 years ago

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