The best brands charge three to five times more than competitors by serving a specific core market exceptionally well, not by cutting prices. Most entrepreneurs pull the price lever first when it should be last. Premium positioning beats price competition, even in saturated markets.
These brands charge 4 times their competitors and they're worth hundreds of millions or billions of dollars. Price is the last thing that you should try to fix, but it's the first lever that most entrepreneurs try to pull. Each of these brands was 3 to 5 times the price of all of their competitors, and they all sold for ridiculous amounts of money. The way to win in a big profitable market is not to drop your price. In fact, It's the opposite. It's to do the best job for a core group of people. All of these brands had a very specific target market and they were the best in their class at serving that group of people. And as a result, they had hungry, raving fans who were willing to pay a premium. That's your entry into a big, profitable, and even saturated market. It's not dropping price to try to compete with everybody else. It's to do something different that makes you unlike everybody else. If you know an entrepreneur who's thinking about dropping their prices, send them this video.
