Some businesses make billions selling low margin products while other do the same with low volume and high margins, so who should you learn from? It depends on how you impact your clients. We all know to you can only mark up coffee so much, but some products can be marked up and be worth a lot more.
Do you support the products you sell? If so, you’re not just selling a product you’re selling your services. One of the biggest differences between businesses that sell goods cheaply and businesses that sell for a premium price is the service. The high price tries to anticipate the client’s future needs so that you don’t have to charge every time you’re needed.
There’s another advantage to premium pricing, the type of clients are completely different. One of my friends and I noticed this when we were at a cheap restaurant. The people there were noisy and had horrible manners, while the crowd we are used to when going to a higher class place was much quieter and had no complaints.
People who have money are usually busy making money, while people who are broke have a lot of free time on their hands. It’s not that people don’t have complaints they just have better things to do.
So to sum it up, if you support your products feel free to charge a premium price for them.
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