6. The most important criterion of pricing (other than costs) is NOT what my competitors are charging.
The most important criterion of pricing (other than costs) is perceived value. That means, the value your customers/clients will place on your product or service. And it all depends on positioning. Positioning is what determines whether you have any competitors and, if so, who they are. For example, two florists. One is called Betty's Flowers; the other, Pistils and Stamens. Stop and think. Which one will a customer expect to offer unique and exotic arrangements? And, therefore, which one will a customer expect to be more expensive?
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