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Understand what makes your product most valuable to your customers. Exercise caution when selling under any other circumstances.
Price is always a strategic value question. It gets short shrift in the business plan when the business doesn't understand its customers' buying decisions.
Price power is also why so many companies outsource noncore tasks or divest noncore assets. If I can't deliver enough value to have a business model, I have to retool my delivery model, find new ways to make my existing infrastructure deliver value, or go out of business.
Case in point: Blockbuster and late fees. They're addicted to the revenue stream from late fees, because they haven't identified a strength that rationalizes their current cost structure. They also haven't retooled (or at least haven't finished retooling) to lower their costs. In return, they're losing customers, market share, and business viability as a going concern. Raising prices and adding fees won't save them.
More positive scenarios:
...If your art nets you more in a gallery, then stay away from art fairs - or vice versa.
...If your customers cost you double what they're willing to pay for last-minute work, use price to drive away rush orders.
...Or, specialize in crisis management and become your market's first call at the last minute. Just make sure your premium price accounts for the riskier business model and high pressure -- and the value your client gets out of the arrangement.
Tough times or no, you have more pricing power where you have strength. Don't let trends, fads, or desperation fool you: if you overprice something your customer doesn't value, you'll be worse off than before you started.
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