All pricing decisions are controlled to some degree by the competi-tion. Competitive pricing is perhaps the easiest to determine, but has disadvantages, as well. It is some- times difficult to determine who the competition is, ie. Competitive pricing requires constant monitoring of the competition s prices, and places you in a reactive position rather than as a proactive decision-maker. Using competitive pricing may not cover all costs and your competitor s prices may not reflect the image you desire for your own business.
Value pricing represents a pricing strategy that typically occurs within small niche markets.
The uniqueness of a product allows the owner to charge extra. The customer is able and willing to pay for a customized product or personalized service and support. The pricing of services has many unique advantages because services are individualized to the customer. Also, the customer may want to use materials that are more difficult to work with or have special requests they wish to include. They may view your business as having something no other business can offer.