How do we decide what’s a fair price to charge, or to pay?
Depends on what we think that price is paying for.
Quality perceptions: You get what you pay for.
$100 is exorbitant for a fast-food burger, but it might be a bargain if you’re eating that burger in an exclusive Japanese restaurant, and the meat is the finest, hand-raised Wagyu beef.
Good things come in big packages.
Most of us get that on a gut level. Years of testing have shown that even if people aren’t necessarily sold on a given product, they will often buy that very thing if it comes with a big bundle of extras that include something they really do want.
Let’s say you offer a weight-loss program. It’s guaranteed to work (if people can really stick it out for the five weeks). But you’re not the only one selling it, and other vendors have established a going price. Go too far above that, and you’ll be branded a ripoff.
Here’s what you can do instead.
Put together a Platinum package that appeals to the audience for a range of high-end beauty and spa services. Partner with high-quality (but maybe less-well-known) purveyors of those services, perhaps getting a discount from them in exchange for the exposure to this audience. Now you have a bundle that’s worth much more than any of the components by themselves: better margins for you, convenience and exclusive service for your audience, and new prospects for your partners.