What is Price Premium?
Price premium is the extra cost charged by a company for its products or services in comparison to its competitors. This premium is usually due to the higher quality of the product or service, or the additional benefits it offers. Price premium is a way for companies to differentiate their products from competitors and to help drive profit.
Examples of Price Premium
Price premium can be seen in many different industries and markets. Here are a few examples:
- Apple products are often sold at a premium price compared to its competitors due to the high quality materials and design of the products.
- High-end restaurants will often charge a premium price for the special atmosphere they offer, as well as the quality of their food.
- Cars from luxury brands such as BMW and Mercedes are sold at a premium price compared to other brands.
- Hotel rooms in popular tourist destinations often come with a premium price tag due to the additional amenities and services they provide.
- Premium cable and streaming services such as HBO and Netflix offer a wide selection of content for a higher price than basic cable.
Conclusion
Price premium is a way for companies to differentiate their products and services from competitors and to drive profit. It is a common practice in many different industries and markets, and is often used to reflect the quality and benefits of a product or service. For more information on price premium, please see the following links: