Your Pricing Should Be Free or Ultra Expensive (And What To Do If It’s Stuck In The Middle)

In a world where companies try to nickel and dime each other to death, “price” almost always becomes a race to the sides.

You are either expensive, luxury, premium, or you are bulk, cheap, value pack.

Anything that sits in the middle of its given category ends up feeling like something for no one.

But when you price for your Superconsumers, instead of all consumers, you change the way people value what they value — and the way your product is valued.

Most Companies Think About Price In One Of Two Ways

The first way is cost plus.

“What does it cost to make what we offer, what profit do we want to make, and what price can we get away with?” This is a very self-centered way of pricing. It’s an important consideration to include, but it shouldn’t be the driver of your pricing strategy.

The second way most companies price is benchmarking versus competitors.

This is a completely reasonable and worthwhile question to ask, but the answer tends to lead down the insane road of comparisons. If most other “competitors” price themselves at $X, companies assume their best path forward is to…