Thanks, Katie. I don’t usually like to consider the competition when pricing a product, as that kind of gives a false foundation. In a business as competitive as yours, yeah, you want to make sure you’re not pricing yourself out of business, but in the end you don’t want other products influencing your price point. When someone is undercutting you, you discount, you steal back your market share, they realize you’re the better option, and they’ll come back at full price.

Now that said, some models are strictly value models and exist to be almost as good as the boutique option but at a much better price — example, every mobile phone other than iPhone, Samsung, and Pixel. In this model the LGs and the Motorolas are trying to build the best device they can and still be able to offer a lower price point. It works, which is why you get the Pixel 3A and the less expensive iPhones.

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I’m a multi-exit, multi-failure entrepreneur. Building Precision Fermentation & Teaching Startup. Sold Automated Insights & ExitEvent. More at joeprocopio.com

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