To set a price over the actual value of the product.

Deeper Insights

Overpricing can have detrimental effects by alienating valued customers. Prices are heavily marked up by businesses that sell commonplace items augmented by unique "benefits." With the heavy markup and improved quality, the business narrows its target market. Most consumers are unwilling to pay such a high price for a few extra benefits.

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Related Keywords: Underpricing, Prestige Pricing, Premium Pricing, Skim Pricing