Imagine deciding after years of planning to open a retail business. One of the questions to be answered at some point is: at what price will you sell your products?
Put simply, the answer to this question is the one that will define the market segment in which you are positioned.
The definition of the price of a product is not easy and there are more ways to get there; However, one thing is certain: making a mistake in the price can make it difficult to manage the company and subsequently recovering the error is not a trivial matter.
For this reason, every trader carries out studies on the market in which it will operate, it will compare the prices of the various players and above all it will decide which commercial imprint to give to its product.
Whether it is jewelry or balloons, the first discriminating factor is the quality of the product . The higher the quality, the higher the cost of raw materials and therefore the base price. To this must be added the management costs, for advertising, personnel costs, costs for the walls for physical stores or e-commerce platforms for online stores.
Everything contributes to the definition of the price.
There is also an additional element, which we could define intrinsic, not linked to objective costs, but connected to the prestige of the brand and it is not a cost at all superfluous, nor unjustified.
Yes, because a brand struggles to achieve popularity; invests enormous sums in advertising, makes choices that are sometimes difficult, sometimes unpopular and clash with many "no" in its path and must rely on its tenacity to emerge, overcoming numerous failures before learning, understanding, becoming authoritative and recognized.
This value is monetizable and makes the difference between a high-end or low-end product and inevitably positions the brand on the market.
exceptions, the rule of "who spends more spends less" continues to apply and, unless you are faced with a sensational blunder, a product more expensive than others, is certainly not the same as the others.