Real estate is one of the industries where a value-based pricing strategy is practiced all the time. Here, the need for the product is so high that prices hardly have any impact on sales, especially when the region’s economy is flourishing. An apartment can be perceived as more valuable due to its location (and the reputation of the place), floor, nature, the infrastructure around, etc. All these aspects have no influence on the cost of the building, but can make the property more comfortable and appealing for buyers.
At the same time, value-based pricing can be applied not only to life-critical products like property and foods, but also to items that are sold well thanks to the brand’s reputation. Let us take a look at the example below.
Apple’s accessories for iPhones and Macbooks (keyboards, headphones, chargers, etc.), are priced several times higher than similar products. Technically, their functionality is comparable to goods from Samsung, Sony and other well-established producers. However, the brand can afford to capitalize on its reputation and loyalty of customers — many associate Apple with quality.