There’s nothing wrong with charging more than your competitors, or even more than you need to break even. That’s especially true when you’ve been able to consistently deliver an experience that your customers find valuable. In fact, as a business owner, it may be your responsibility to make sure that your clients understand why you’re charging more.

The Price Can Be Higher

Whether it’s an expensive new product from Apple or a premium cable channel package, The price can be higher, and can get away with higher prices when they are justified. The key is to make the price increase reflect one thing and one thing only: the value that your product or service delivers to your customers.

When the price goes up, it creates an incentive for anyone in possession of items that are in short supply to place those items on the market. For example, if the price of toilet paper rises, it encourages people with extra rolls to put them on Amazon or Craigslist so that others in need can find them. The same logic can be applied to any kind of inventory.