Pricing = Cost + Value
Avoid underselling in Dubai: price for value without breaking trust. This note is written for owner-led brands and service businesses selling in the UAE (and India) today.
Why pricing is tricky here
Dubai is premium by default, but price sensitivity still exists. Expats compare across regions, tourists compare within a day, and locals value consistency and reliability. That creates two traps: underpricing to “be safe”, or overpricing with a weak promise.
The simple equation
Price = Cost + Value. Cost (landed + ops + CAC) protects you. Value (what the customer gets, feels, or avoids) lets you capture upside. If your value narrative is thin, you’ll always be dragged back to cost.
1) Land your costs
Know your fully‑loaded unit economics: landed cost, packaging, fees, rent share, staff time, platform commissions, payment fees, and realistic CAC. Add a small buffer for FX and seasonality.
2) Make value explicit
Premium quality, reliability, speed, convenience, compliance, after‑sales, or a unique outcome. Turn these into promises you’re happy to be measured against.
3) Anchor, then justify
Use an anchor that feels normal in the UAE (competitor, international ref, or your own higher tier), then justify with proof: numbers, social, or policy.
UAE‑specific tips
- Tiers beat discounts. Have an entry, core, and premium tier. It keeps margin while giving choice.
- Bundle outcomes, not items. E.g., coffee subscription + VIP grind support + same‑day delivery → “never run out again”.
- State your compliance. For services, a simple “DMCC‑registered / VAT‑compliant” line reduces friction.
- Show payback. When selling B2B, demonstrate how your price returns value in months, not years.
Quick exercise (10 minutes)
- Write your fully‑loaded unit economics on one line.
- List 5 value points, turn them into crisp promises.
- Create 3 tiers. Keep the middle as your target.
- Decide one hard policy (e.g., same‑day exchange / 7‑day refund) to build trust.
Want me to sanity‑check your pricing and positioning?