Premium Pricing Examples
- Luxury goods
- Brand names
Deeper Insights Into the Premium Pricing Strategy
Premium pricing, also referred to as "image pricing" or "prestige pricing," aims to display the quality and experience associated with a product, in which a seller deems artificially high prices for a product or service. Frequently seen practiced with brands such as Gucci, Apple, etc., premium pricing is used to encourage favorable perception based on price alone. People know the quality of product is already good, and with the reinforcement of a high cost, people expect that they're paying the price for a reason.
The price point is normally above standard market value to create a market perception that brings in further revenue. This is a pyschological marketing strategy based on utilizing particular pricing techniques to form a psychological impact on consumers. In your own business, you should work to determine your potential fit in the premium offering spectrum to utilize psychological pricing effectively.