What can a USD$11,465 Virgil Abloh x Supreme T-shirt teach us about value-based pricing?

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What can a USD$11,465 Virgil Abloh x Supreme T-shirt teach us about value-based pricing?

It’s no surprise that when two of popular culture’s household names come together, a lot of hype (and dollars) can be expected. Most recently, in the form of a yet-to-be-released box logo T-shirt between streetwear powerhouse Supreme and Virgil Abloh (the man behind Off White and recently donned Creative Director for Louis Vuitton).

The T shirt in question – a fairly simple pre-released white T with a modestly sized Supreme logo – is listed by a reseller at a colossal USD 11,465. No hand-crafting, no fancy materials, just great brand equity!

While we’d naturally scoff at the figure, this is a prime example of value-based pricing – where a product or service is priced not based on the objective offering itself, but on the perceived value.

In an uncertain market where competitors are throwing prices, establishing a unique value proposition for either your corporate or individual brand will be key to determining how you price your products/services. And ultimately, how well you’re able to close on said price with your customers/clients.

For the service industry, while time-charging has its merits, it becomes problematic for seasoned freelance writers or designers who may only need an hour (or less) to come up with great work. However, if said freelancer went on the basis of being able to deliver results and in the shortest possible time, they’d be in a better position to avoid shortchanging themselves.