With image pricing, prices are set higher than average for brand name products. The product is identical to one the company already has on the market, however this one is sold at a higher price and different name/packaging. The high price indicates to the consumer high quality and added value. This high-pricing strategy is more beneficial for them than a low-price strategy and helps make up for the low profit margin on the identical product. Remember the products are not different, the different in price only suggests to consumers that one is higher quality than the other. The high price encourages favorable perceptions among buyers.