Why Charging a “Fair Price” for Your Products is Stupid

If you are worried about setting your product prices too high,
and have decided to charge a “fair price”,
you are hurting your business in SEVERAL WAYS.

Here are three reasons
(I actually have more but picked my top 3)

1 – People will think your products are less valuable.

Our society correlates price with quality. When you go to a wine store, you will find the higher priced wines on higher shelves, and lower priced wines on lower shelves.

Most people (myself included) conclude that the wines on the higher shelves are BETTER.

So, when you aim to be the lowest price bar of soap, or the mid-priced jam, you are actually telling the market that you are average, or below average, in terms of quality.

Average and low quality brands don’t create a following.

2 – You are NOT being selfish.

When you charge a price that allows your business to be profitable,
guess what you are probably going to do with most of the money you earn?

Buy stuff.

You are going to support your grocery store (and the people who work there),
the local gas station (and its employees),
and any other place when you spend money.

Those places buy things from other companies,
and have employees,
so the money you earn from your business circulates around to other people.

When you are UNPROFITABLE (from undercharging for your products),
you diminish your ability to support businesses
,
and charities,
that depend on you.

That sounds selfish to me.

3 – Life is hard.

Your customers have a lot going on and live busy lives.
One way that people get enjoyment from life is to use products and services that bring them joy.

Whether this is buying fancy coffee,
or enjoying a delicious meal at a restaurant
or taking a shower with an amazing artisan soap,
the experience is influenced by someone PERCEIVES the experience.

That starts with how they value the product.

If you told me that a particular candle is the most amazing in the world for some specific reason (your USP),
when I go to use it,
I will value the experience MORE than
if it were a low priced candle that I got at a “fair price”.

When you undercharge for your products,
you rob your customers of the opportunity to TRULY enjoy them

because they won’t get to feel they are valuable or special.

They won’t see they the product as an indulgence or a treat,
or something that worthy people deserve.

If your customers have modest salaries,
sometimes the only available “TREAT” they can afford
is a luxurious $10 bath product.

* * *
When you undercharge for your products,
you hurt your brand,
devalue how people perceive your products,
damage your ability to support your local economy and
rob your customers of the opportunity to truly enjoy your products.

How is that “fair” to anyone?

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