Overpricing is the act of setting a price over the actual value of the product.

Overpricing Examples

    Movie theater popcorn
    Anything from a minibar
    Food at an airport

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.

That being said, overpricing is a popular strategy in places like movie theaters, airports, or sporting events. Since you are leveraging a customer's need for a product, you can price it according to the need, not the actual product value.

Related Blog Posts

3 Ways Apple Crushed the iPhone 5 Pricing Strategy

A Peanut Butter Story: The Highs and Lows of Your Pricing Strategy

Innumeracy: How Your Pricing Strategy can take Advantage of Mathematical Ignorance

Related Keywords: UnderpricingPrestige PricingPremium PricingSkim Pricing