Makes you think, if these guys can fill an entire book with great content about pricing strategies, we should probably put a little more effort in our price strategy than pulling a number out our heads based on our own preconceived notions of what our customers would pay based on the competitors pricing, etc...

After all, if price is a numeric representation of value exchanged, if your prices aren't at the top of the market, you are probably not serving your end-users as well as possible with the best value possible.

More importantly, the more you charge and the wider your margins, the more room you have to create and deliver a superior product and customer experience.

If Dan Kennedy is to be believed, only about 20% of consumers shop by price. There are two reasons they do so... 1. They can't afford to spend more and have NO CHOICE. 2. They are too lazy to think about what they are buying and actually research the product, and determine what product serves their needs best.

Question: Do Your Really Want These Customers Anyway?

Bottom Line: If you are price competitive, it might just be because you are too lazy to put real effort into creating, communicating and delivering value, or have a lack of confidence in your offering.

End Result: you end up attracting the wrong type of customer that doesn't appreciate you or the value you provide, or just doesn't have the money to pay you. (from experience, these customers are the biggest headache and rarely worth the time and effort)