Definition of product premium

Refers to the part that is higher than the market sales price under normal market competition conditions. For example, the cost price of an economics book is 20 yuan, the market price is 50 yuan, and the bookstore sells it to 70 yuan. The extra 20 yuan is the premium part.

Product premium is the added value of products. The same product can sell at a higher price than the competitive product, which is called the premium ability of the product.

Consumers buy goods (services) mainly because goods can achieve certain functions and meet the needs of consumers. Only by ensuring excellent quality can consumers build long-term confidence in the brand, and long-term reputation is the basis of brand premium.

Extended data

1. Stock premium:

There is a premium on stocks, which means that there is money after deducting various fees and other expenses. Is the stock premium. How much premium space there is for tickets refers to the difference between the target price of this stock and the par price of the stock.

Second, the gold premium:

Gold premium means that the amount actually paid exceeds the par value or face value of securities or stocks.

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