Higher Prices Rule!!!

niallcore

all this is good info thanks.
i m a personal trainer starting out and i ve had many people tell me that my price of €60 per hour is too high..i could cut my price to €45 or €50 like everyone else but what would be the point.
i give good value for money. i give more services than anyone else and i get the best results.
i ll reread and reread this post again to get it in my head.
thanks people

JohnVoris

There is a great deal of good advice here but we should not forget one of the very few real and true laws of commodification: the law of supply and demand. It is also called the "sweet spot" and marketing firms have spent decades studying this illusive focal point.

If someone raises their price and happens to sell more, that tells me they were under-priced in the first place. Conversly, if someone lowers their price and sells more, then they were overpriced in the first place. It is not the pricing that brings impact, for price is the final dynamic effect of a prior cause. That prior cause is the logic used that is driven by the prospects deeper beliefs.

Price effectiveness depends on what is being sold and to whom. Lowering the price of a new Bentley a few thousand dollars will not have much of an impact but can speak volumes when selling a low-end Ford or Chevrolet. At one end, price rules and at the other end is luxury--seasoned sales reps know that not all value is created equal.

Studies suggest focusing on the following considerations:

There is a functional logic of use-value. A Honda Civic or truck driven by Wisdom

There is an economic logic of exchange-value. Completive Price driven by Justification.

There is the logic of symbolic exchange-value. Reduced price driven by the Philanthropic experience.

There is the logic of sign-value. Social status found in a Bentley driven by Social Power