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PBusiness modelUpdated 2 Nov 2026

Premium pricing

Strategy of setting prices higher than competitors to signal quality or exclusivity.

Definition

Premium pricing is a common strategy for brands to use in order to stand around the competition. Instead of battling against the market, they can charge more for their products and still make a profit.

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In the room

How the word shows up in a real conversation.

In a Monday review, someone writes Premium pricing on the board and restates it: “Strategy of setting prices higher than competitors to signal quality or exclusivity.” The next move is a test, a cut, or a double-down — not another debate about the word.

Common mistake

Using Premium pricing as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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