Pricing can be tricky.

Aim too low, and people wonder what’s wrong with your product (or think your service is second rate). Price too high, and you might have few or no takers.

I’ll pay a premium for value. Great customer service, beautiful design, and reducing carbon emissions are all value-adds worth paying for.

A gallon of milk is not a premium product. So charging a 33-percent premium ($3.99 in this store versus $2.99 here–and even less at Costco) is just asking me to shop elsewhere.

Why would any business want to do this?

Photo by Muffet (Flickr).