People will never buy if their perceived value of buying from you is less than your price. The only people who will pay more for what they get are those who are being forced to buy from a specific entity.
You protect your revenue stream representing cash inflow by restricting your cash outflow to items you can earn more on the spend than it costs you.
Overview
The customer Price/Value Equation lies at the heart of most purchase decisions made daily. The price reflects what you pay, and the value represents what you get.
You make superior value connections with your customers when your employees understand the why, and your customers see how your business is unique. Providing clear answers to these questions allows you to set and maintain a price for your products and services that provides a good value to the customer and a profit for you.
No one wants to incur a cost higher than the benefit they derive. When establishing the prices you charge, you avoid being seen as a poor value by either increasing benefits or decreasing costs to increase perceived, or real value to the customer. When you know what people perceive to be of value, and your employees understand how to deliver that value cost-effectively, you will earn higher profits.
The value of a product for any buyer centers on their perception of the price they will pay relative to the benefits they expect to receive from their purchase.