Niche marketers should price their products and services based on the value received by the customer: it is the customer's perception of value that counts. If you calculate price based on cost and / or the competition, you are not in a niche market or you are pricing incorrectly.

Niche market customers buy your product or service because it is different from the other options available. That difference is your value and it can be worth a premium price. Value is subjective and not every customer will need your product's unique benefits,

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