It’s been impossible to miss Apple’s latest iPhone launch this week – the new iPhone X.

Aside from all of the technical features, the feature most people seem to be talking about is the price. The standard version is $999, or you can pay $1,149 for extra storage.

Lots of people have been moaning about the price and saying they’d never pay that……..but Apple are actually struggling to meet demand.

That’s because they have built a legion of fans who’ll happily pay more to have an Apple product. Also, they’ve always positioned themselves as high-quality products, with a price to reflect that.

This means that, although their market share is now less than some of their rivals, they make more money.

Now, there’s no right or wrong when it comes to picking a pricing strategy – it’s about knowing your market and deciding on your positioning within that market.

You see, different people will pay different prices for different versions of the same thing.

Want to get from A to B? Well, you could buy a brand new Dacia Sandero for £5,995. Or you could go for the Koenigsegg CCXR Trevita super car for $4.8 million. They both do broadly the same thing, don’t they?

And, when you’ve chosen the car, you’ll need to get it washed. Will you pay £5 on almost any street corner? Or pay £7,000 for the world’s most expensive car wash by Gurcharn Sahota?

The key is that all of these options are aimed at different parts of the same market.

It’s a safe bet that Gurcharn’s customers don’t drive Dacias. Instead, he’s targeted the super rich who’ll happily pay seven grand to keep their super cars shiny and clean.

Of course, there are also thousands of competitors if you set up a £5 car wash. But you’ve practically got the market to yourself at £7,000 a go……as long as the quality justifies the price.

Brikk's Lux iPhone

Now that’s a cover!

This is what BRIKK have also realised. They make iPhone covers and this week announced their new covers for the upcoming iPhone X. The prices start at $7,495 for the Lux Mono version, with a choice of yellow gold, pink gold or platinum.

Or you could pay $69,995 for the Lux Ingot 250, which they describe as “the definition of opulence”. And some people think the iPhone itself is expensive!

And BRIKK, like Apple, have built up a loyal following who will continue to pay top prices for a top quality product, Again, they understand their target market and appeal to them.

So, what’s your pricing strategy? High prices for high quality, or high volume at a low price? You can make big profits with either but you can’t do both at the same time – you need to be clear on your strategy and your target market.

Any questions?

If you’d like to chat to your favourite Liverpool accountants about this, please give us a ring on 0151 380 8080 or email us at growth@jondaviesaccountants.co.uk.