What does premium mean to me? (2023)

What does it mean to be at a premium?

"At a premium" is a phrase attached to situations where a current value or transactional value of an asset is trading above its fundamental or intrinsic value. For example, "Company X is trading at a premium to company Y." Or, "A commercial building was sold at a premium to its underlying value."

As an adjective, premium implies something of superior quality that probably costs more too. Premium comes straight out of Latin, meaning “reward.” It was first used as an adjective around 1925, in the phrase "premium butter."

Premium pricing is a marketing strategy that involves tactically setting the price of a particular product higher than either a more basic version of that product or versus the competition. The purpose of premium pricing is to convey higher quality or desirability than other options.

The definition of premium is something or someone of greater or superior quality.

Premium products are typically defined as products that cost 20% more than the average category price. The fact that demand is growing for more expensive products might seem counterintuitive, but it's true.

A premium brand is an individual, company, product, or service generally perceived to have exceptional value in the target market's mind. In other words, premium brands have the It Factor. Premium brands offer a combination of supreme quality, value, purpose, and exceptional experience.

Five factors can affect a plan's monthly premium: location, age, tobacco use, plan category, and whether the plan covers dependents. Notice: FYI Your health, medical history, or gender can't affect your premium.

So, is premium gas worth it? If your vehicle's manufacturer recommends using premium gasoline, then filling up with premium is a good idea. Using lower octane fuel in a high-performance engine over time could eventually cause knocking, potentially damaging the engine.

How do you explain premium pricing?

Premium pricing is a strategy that involves tactically pricing your company's product higher than your immediate competition. The purpose of pricing your product at a premium is to cultivate a sense of your product's market being just that bit higher in quality than the rest.

See definition of premium on Dictionary.com. adj.excellent. nounbonus, prize.

Quality can be defined as conformance to specifications. The degree to which a product meets the design specifications offering a satisfaction factor that fulfils all the expectations that a customer wants.

Premium services are content or live advice services which can be accessed via a phone call, messaging service (eg. SMS) or mobile data connection (eg. GPRS/WAP). These service numbers usually start with a 188X, 19X, 190X prefix or an international access code.

Basic Premium — the underwriting and administrative expense component of premium; amounts required for adjusting of expected losses (see unallocated loss adjustment expenses (ULAE)). It is added to the pure premium to produce the standard premium. In life insurance, the basic premium also includes agent commissions.

Premium brands position their products or services in a way that makes them more valuable. People want to feel competent, desired, even envied by others. If a product or service can help them experience these feelings, they will value it more—and pay more for it. Consumers still appreciate the value of a premium brand.

Premium and luxury brands are brand systems characterized by performance leadership in their segment and by an outstanding, product-specific basic and additional benefit. Premium und luxury brands can assert higher prices for their products and services than brands with similar tangible functions.

More consistent products and increased efficiency

Quality management helps companies improve their products' reliability, durability and performance. These factors help differentiate a business from its competitors. Better products equal happier customers and higher revenue.

Is premium better than luxury?

Customers will pay a premium because it is of better quality, materials, service, or process. Luxury brands do not always mean you're paying for better quality. For example, a $200,000 Rolls Royce car, the epitome of luxury, is likely to have a lower build quality than a $30,000 Hyundai.

Key Takeaways. Using our fact sheet details, find the premiums and coinsurance amounts for Original Medicare Parts A and B services in 2022. Most people will pay no premium for Medicare Part A, and will pay $170.10 per month for Part B.