How does price affect the "image" of my product?

How does price affect the "image" of my product?

William A. Cohen (Author & Founder, Institute of Leader Arts) gives expert video advice on: How do I determine what to price my product or service?; What is a "price margin"? and more...

You have got to remember that price has an image value. I'm told by a lot people including my wife, Why are you buying the most expensive? She says "Well, that's the best". How do you know? She says "The most expensive... right?". In other words, it's considered one way to an image... as our image. So, you have got to be careful. Now, maybe you can price very low, but you got to recognize what that's going to do to your image. It's difficult to raise the price later on if that's your intent. I talked to a lot of people including attorneys that come or have come to me in the past for advice on marketing and they went in really low. They hang out their shingle to get business. They went in low, and now, when they go to raise their price, they lose their business, everything, because they've identified themselves in a certain way because of their pricing.