Where do you position your product or service in the marketplace? What value do you attribute to it? What business model to adopt? Sell it cheaply at high volume or sell it at a high price with a high brand value but at a lower volume. Conversations like this usually go on a stuffy Business Breakfast Clubs up and down the country
I used to work in an industry where there are a few business models in place, but yet pricing to the end consumer varies greatly. That is the Private Hire Taxi industry.
The majority of “taxi” drivers are self employed, any fare that they charge goes in their pocket (as does the tip (if given) obviously). But it is the taxi company that dictates the rates charged, as opposed to the Hackney (Black cab) taxis that have their rates set by the local council. In Preston most of the taxi companies charge £1something “kick off” and £1.50ish a mile. In Milton Keynes the kick off is £3 and £1.10 a mile.
Local economic forces dicate the pricing structure. Especially where there is a middle man… an agent that sets either the charge to the end customer or to the self employed supplier of the service.
I’ll be writing more on various business models as applied to the services industry. Who knows I maye just go into this as a business myself *wink*