Money needs to be money well spent!

If you're selling something be it a product or service, it needs to give your customers value for money.

They need to feel that the money they have invested in your product or services is going to give them more value than the amount they're spending on your product or services. If you have a bad back, not having a bad back is bound to be worth more than the £50-100 you would spend on visiting an osteopath/chiropractor to sort your back out. If you can't sleep, spending money on a new mattress will probably be worth the money you spend on it, if the end result is you get a good night's sleep. A dishwasher or washing machine is worth more than you will spend on it, because it offers you a time and energy saving solution to washing the pots by hand or visiting a launderette every week.

If you expect people to pay a premium price you have to offer them something vastly better than the cheaper option available on the high street, and you have to let them know that it is a vastly better product than they can get on the high street! No one wants to feel short changed so offering an inferior product or service, at an inflated price is only going to cause upset and hassle and make your customers or clients feel cheated. Annoy or upset your customers and they won't be back for more of your products or services and the comments they'll make to their friends won't lead them to come to you either.

Before fixing your pricing structure, find out what people would be willing to pay for such a product or service, and how often they are likely to buy it. A once in a lifetime purchase such as a wedding dress might have a greater ticket price than an every day jumper, but this is reflected in the sheer fact it is special and a once in a lifetime purchase. People need jumpers more frequently than wedding dresses, so are not going to pay huge amounts for jumpers, but would be happy to come and buy another jumper off you next week, should the one you buy off them this week be good value, hold it's shape, be washable, and fashionable.

If you are selling a premium product, make sure that your packaging and marketing materials also reflect this. Don't try fobbing off your customers with cheap bags, a website made by your neighbour, and marketing materials printed off on your pc! Make the whole thing look streamlined by choosing branding carefully to reflect your premium products and give your customer a premium experience. This way they will hopefully recommend you to their friends and come back to you next time they need a similar product or service.