I had heard one thing in my teenage. A top class engineer makes a best quality product. It could do many things that other things cannot. But the cost was so high, that no one is willing to buy it. The question then is, is it wise to make such an expensive product which no one is willing to buy? To put the example in real perspective, which company/business will you rate high? There is one company which makes niche product that are very costly that there is very low business while there is other company which sells same product with the cost which customers accept. The quality may not be best, but it is still good to be used. The best quality product may not sell in high quantities, but the good product becomes the best seller and a favorite among the customers.
You need to build products which have price that the customers will accept. There is normally a demand and supply. If the supply is more than the demand the price starts to go down. If the demand is more than the supply, then the prices of the products increase. You need to keep the price at such a point at which the customers can buy it. If the customer is not able to buy, he will find another alternative to go without the product or build another product. There are many a patents products of which were kept so costly that they could not be bought by any customer. Since it is a patent, no body else could develop it. A good invention can die a natural death because of this.
Always try to gauge the demand supply before arriving at the price. Do not kill the product and your business by keeping exorbitant price. Yes, if you believe that the product does give a great value to the customer and there is no competition, then you can see what price is suitable. After all, you want to make best sellers.
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