The Value of the Price

Here's a question for you... If you had a new product, which of the following would you do?

a.) Sell your new product at a discount so it generates trial
b.) Sell it at the normal price at the beginning

Many will answer a, but based on research gathered by innovation expert Doug Hall, b is the best answer. "Price dictates the value of your product in comparison to your competition". If you have a higher price of your product as compared to your competition, you are saying that your product is better than your competition, and vice-versa. Hopefully, their customers will agree.

A brilliant case study in the Philippines is Go Nuts Donuts. I'm guessing it's a Philippine-owned company, based on the Yahoo! search results, but I actually, got to verify that it is proudly Pinoy. Their website is professional and at the same time it's so delicious! Based on their website, I thought it was just another foreign franchise. Their donuts are more expensive as compared to Dunkin' Donuts and Mister Donut. They are saying that our donut demands a higher price because they believe that it's better than their competition. Currently, they are proving it to consumers and I have heard many positive feedback.

So, if you decide to go and copy a business and sell the product at a cheaper price, you'd better watch out because, business ain't about having the lower price!