Overview of Premium Price

Premium pricing is a strategy used by companies to keep the price of their products or services artificially high in order to create a perception of higher quality or exclusivity. This can help differentiate their offering from competitors and attract customers who are willing to pay more for perceived value. While premium pricing can lead to higher profit margins and enhance brand value, it may also alienate price-sensitive consumers and limit market reach. Examples of products that often use premium pricing include designer clothing and luxury electronic devices like Apple products. Overall, premium pricing is about leveraging price as a strategic tool to position a product as a premium offering in the eyes of consumers.