What Is a Suitable Price and How to Find It?

“The price must be fair.” In these times that we are living this phrase can have many interpretations. The first question that may arise is: fair for whom? The seller, the buyer or the supplier or who are we talking about?

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I do not have all the answers nor do I think there is a point of view that covers all aspects adequately at all times. Uganda WhatsApp Number List This time I’m going to focus on the buyer’s perspective. Price is a key element that is part of every product description . When we talk about a fair price for a consumer we talk more about an opinion than about a subjective matter.

1. A price has to reflect the perceived value : a price is a point of view. Depending on who you ask, it may seem too high, adequate or low. It depends on the experience, the available information and the mood of the person. I have to have the feeling that the offer brings me more than what I have to sacrifice financially to obtain it.

2. Lowering the price too much creates distrust : a new Ferrari cannot cost 20,000 euros. In that case it is stolen or a Chinese copy that has been pasted with the shield. The acquisition cost of a Roman coin sometimes does not exceed 1 euro. The sale price can easily exceed 80 euros because a valuable object that is more than 2,000 years old cannot cost less.

3. Excessively High Pricing Creates Exclusivity

Uganda WhatsApp Number List
Uganda WhatsApp Number List

Excessively high pricing excludes a significant portion of the attainable market because they simply cannot afford it. In quality it is usually superior but not so much that it justifies such a difference in price. Exclusivity provides image to the buyer. It is enough for them to buy a few at a high price for the business to be profitable.

4. Urgency is a powerful price weapon : sales and figures with discount percentages do not only have a psychological effect on compulsive buyers. Pricing is an important tool for generating urgency. In the case of Webery Day , this effect is not applied over time but based on tickets sold (the price increases by 1 euro with each new participant in the workshop).

5. The price is calculated according to the buyer : without demand there is no supply. There are very specific markets where the price is clearly set by the buyer. This is the case for the purchase and sale of domains. Supply exceeds demand. A domain can be valued but in the end it depends on the willingness of the buyer. The same logic applies to the world of start-ups. It makes no sense to come up with formulas for the valuation of newly created companies. The price is set by the investor. It has always been this way and this will never change.

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