August 23, 2019

Pricing expectations in established markets

People have pricing expectations for established products and services.

For example...

Paperback books are an established thing. They’ve been around for a long time. Therefore, I have an expected price range for paperback books.

For something like a new paperback book, I’d expect to spend maybe $10 at the low end and $20 at the high end.

Given these expectations, three things can happen pricing-wise when I walk into a book store and see a book I’m interested in:


If you’re selling something in an established market, your buyers are probably going to have strong expectations about what your price should be.

Which means you’ve got three pricing strategies to consider:

Any of these strategies can work, but each implies a very different business and type of client relationship. Which one is right for you depends on several factors.