It’s all about the customer

A price reflects the extent to which a company understands the perceived value of a customer.  Customer perception of value is the driving force in any pricing strategy.  It takes time to understand the needs and problems a customer has.  It takes time to develop a strategy for solving that problem for them.  It is time well spent.  If you market a product without the taking the time to understand your customer’s needs, you will inevitably start feeling the pressure from the prices set by your competition.  If you are feeling this pressure, you are not marketing your products properly.

A product should be marketed based on the customer perception of value.  This can be done for products already in the market as well.  A product that is marketed to customers needs will solve their problems.  It will create barriers for the competition, and prevent them from replicating your success.  It establishes trust and credibility between the company and customers.