The Price/Value Equation

Are you hearing that your prices are too high?
Do your customers tell you you're charging them too much?
Are you losing business to lower priced competitors?

If price is a complaint, there is a very good chance you're not providing enough value.

Instead of lowering prices, consider increase perceived value.

Rolex customers don't complain about price. Rolex doesn't lose out on business to lower priced competitors. After all, if you're in the market for a Rolex, chances are you're not settling for a reasonably priced Seiko.

Rolex provides status to it's customers, and status has value.

If Rolex lowered the price, they would lower the status... and hence the value.

Tickets to see Bruce Springsteen on Broadway are expensive. Quantities are limited, the experience is rare, and Bruce is an A-lister. A quick search of StubHub showed the cheapest tickets at $926... in the left corner of the mezzanine, three rows from the back. They aren't the worst seats in the house, but they are damn close. And those tickets will sell. 

People paying $1,000 to see Springsteen on Broadway are not wavering between that and a $50 TKTS bargain to see something else.

If you're hearing that your prices are too high, don't immediately jump to lower them. Maybe they are too high. Or maybe your customers just don't feel like they are getting enough perceived value.