In value-based pricing, the perceived place of a product in the market plays a crucial role. It helps in positioning the product relative to the competition. The goal is to find a competitive edge by understanding how customers perceive the value of your product compared to others in the market. If your product is perceived as high value, you can price it higher, thus maximizing your profit. Conversely, if it's perceived as low value, you might need to price it lower to attract customers.
Need to improve your product pricing to maximize your profit margin? This Pricing Strategies Toolbox...
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