»  Shoppercentricity

I just read an interesting article posing an intriguing question - What is Price? And before you are quick to answer, think about the implications of that answer.

Price is what a retailer or manufacture asks a shopper to pay for a product. But there is a shopper side to consider as part of this as well. Price also reflects how a shopper views a category or how much value they attribute to a product. Even more, knowing today's value driven shoppers, price can be a way for shoppers to navigate through a sea of products; price can actually help shoppers deselect as well as select.  

So what is the implication? The article concludes by saying "your price should substantiate your value claims...So the next time you establish your price, ask yourself this question “Does this price accurately reflect the value I provide?”

I would push this conclusion even one step further. The next time you establish your price, ask this question: Does my pricing accurately reflect the value I provide to shoppers. Said another way, does it reflect the value shoppers believe I provide?