Seth Godin asks a provocative question. Assuming you’re a real estate broker and the standard commission is 6%, what would you have to do differently if you were to charge a 7% commission? (Some brokers are now becoming discounters, charging 5% or less.) Or what if you make a $10 (retail) product and you raise the price to $12? How would you make it worth it to customers?
If your price point is right for the market, you’re maximizing revenue. Charge too little, and you need to sell more to achieve the same amount of revenue. Charge too much, and you will probably sell less, perhaps resulting in lower revenue. But what if you could add value with little extra cost, and what if that value-add was worth a higher price to lots of customers? It might be worth finding out what customers would pay extra for. How would you do that? How about asking them?