Price is an important part of positioning. In many people’s minds there’s only 2 types of businesses – fast food and gourmet meal. If you’re in the middle you’re confusing and that means you’ll soon be dead.

If you want to be gourmet meal you must price accordingly and offer plenty of evidence to support the high value of your offering.

I find myself in a similar situation to the turquoise seller with wedding photography. Having lowered prices to the level and even below the competition, I’ve noticed no change in bookings – despite offering better packages IMHO.

Guess the next move is to increase prices. But I keep having a nagging thought in the back of my mind from a recent “the business of photography” marketing seminar when the guy said about not selling pizzas when the crowd wants ice cream.

Maybe I’m trying to sell artistic photography to a crowd that REALLY wants a bunch of competent snap shots.

Sorry for rambling but this has kicked off my thought process, which I need to test somehow.

You, like the employees, misread the intent of the shopowner. She wanted everything in the case to re-priced at half of what she was currently asking. The employees misinterpreted her intent and doubled the price. They did not label it as “half off.” There was no deception.

What the shopowner learned is that the expectations of the buyers were completely different than hers. She knew t-q jewelry inside and out and knew the value of her pieces relative to other pieces out there. That is a great strategy when your customer base is as knowledgable as you are.

Tourists, as noted, do not have this knowledge base. They only know what the price point seems to tell them: “Expensive = good.” If they were really desirous of lower prices, however, they should take Ramit Sethi’s advice and remember that EVERYTHING IS NEGOTIABLE.

Stores use that trick all the time. The employees tell people to come back the next day for certain items because they’ll be on sale. Then they RAISE the price, and the customers still buy it!

I can only imagine how many times I’ve fallen for tricks like that.