Creative and generous businesses have shifted their pricing strategy from a cost-based model to one rooted in customer experience. This doesn’t mean running a business at a loss – far from it.
While understanding your costs remains crucial, basing your prices solely on them could lead to missed opportunities to truly serve.
Customers don’t just buy products or services, they buy an experience but most importantly they buy the feeling they get from it. By pricing based on the value of these experiences, businesses can better align their offering with what customers desire.
It isn’t about appealing to everyone, but to those who will really value and appreciate your unique experience. It’s about finding and nurturing your specific tribe rather than trying to please the masses.
When you deliver exceptional experiences that resonate deeply with the group of people you seek to serve, you create a unique value proposition that justifies higher prices. It’s not about charging more for the sake of it, but about fairly capturing the value you provide. It gives them a signal.
Experience-based pricing encourages continuous innovation. It pushes businesses to constantly enhance every touchpoint of customer interaction, fostering loyalty and word-of-mouth. In a world where competitors can quickly replicate products, unique experiences are a must.