How to "Cheapen" a Product Without Lowering Its Price

Clients perceive something as cheap or expensive based on all the information that accompanies its price.

Thursday, October 31, 2013

Learn how to improve price perception of your product or service without having to give discounts to customers.

By Ariel Baños
President and founder of FIJACIONDEPRECIOS.COM

One of my common refrains: "Nothing is expensive or cheap, it is all relative." Its true. If we want to evaluate a price without any more information than the monetary figure, we can hardly tell whether it really is economical.

Clients identify something as expensive or cheap, depending on the information that accompanies the money. Among other things: the values ​​previously paid, substitutes or alternative products, prices of other brands, the information received by the sellers, advertising, signage, to name a few factors.

By defining the information evaluated by customers along with the price, companies can improve the perception of the prices they charge. In this way they can make prices seem "cheaper".

More on this topic

Prices: How to Decommodify our Proposal?

August 2020

"If we overcome the mental barrier of commoditization, identifying and communicating those added values going beyond our basic proposal, we will have the opportunity to take our profitability to another level."

Ariel Banos, founder of explains that when a proposal is a commodity, in other words, it lacks differentiation with respect to others offered in the market, the only alternative is to align itself with the prices charged by competitors. There are no magic solutions.

How to Stop Competing Just for Price?

December 2019

Charging tariffs consistent with the positioning of the brand and communicating its differentials with respect to the competition, is essential to stop competing for price and redirect the strategy according to the value of the product.

Ariel Baños, specialist in price management and founder of, explains three strategies to avoid competing only for the price factor, because in these struggles there are no winners and only attract the least loyal customers.

Keys to Stop Competing for Price

April 2019

Identifying a segment that values the differentials of the product or service and charging a price aligned with the company's strategy are essential to avoid competing with the lowest prices in the market.

Ariel Baños, specialist in price management and founder of, explains how through the implementation of an appropriate strategy, it is possible to compete in a market where there are suppliers who charge derisory prices.

The Ideal Price System

March 2018

The challenge in defining the most appropriate pricing system for each company is to identify what value the products and services sold have for each customer.

The founder of, Ariel Baños, explains the key elements for determining how companies should establish prices for their products and services. Baños notes, "...The price should be related to the value for each client " , but the complexity is in being clear about that value, since " ...When we buy something in general we are not completely sure of the results we will get when using it."

 close (x)

Receive more news about Marketing and Sales

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Gluten-free food business for sale

Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand.
The OHNE brand has 8 product lines: square bread, sweet...

Stock Indexes

(Apr 6)
Dow Jones
S&P 500


(Jan 22)
Brent Crude Oil
Coffee "C"