Let Product Set Price

One of the worst kept secrets in the tech world was confirmed this week. Apple is adding the iPad mini to its tablet lineup. It’s 7.9 inch screen will combat Amazon’s Kindle Fire and other smaller tablets.

An area in which Apple is not targeting competitors is price. At $329 for the lowest priced model, the iPad mini is priced above comparable products… And that is OK. It runs counter to pricing strategy used by late entrants, but Apple is not the typical latecomer.

Apple does not have to obsess over competitors’ prices because price is set by product quality and customers’ perceived value of quality. Price for the iPad mini was set by the successes of the iPod, iPhone, and iPad. Users understand Apple!s value proposition; they need not be enticed by price to try the product.

Let your products and services set price instead of it being defined relative to other brands. To do that, a commitment to delivering a great experience is a must. The value you create today sets the stage for profitably pricing products tomorrow.

Author: Don Roy

Don Roy is a marketing educator, blogger, and author. His thirty-year career began with roles in retail management, B2B sales, and franchise management. For the past 27 years, Don has shared his passion for marketing as a marketing professor. Don's teaching and research interests include brands, sports marketing, and social media marketing. Don has authored over 20 articles in scholarly journals, co-authored two textbooks, and self-published three books on personal branding. Don is an avid hockey fan and enjoys running. He and his wife, Sara, have three sons. View all posts by Don Roy