Price

An article by Paul    Comments Off

It’s an interesting thing price.

How high we are prepared to pay for something is so closely linked to the perception of value we hold for the item.

How high can the price go? Well as high as someone is prepared to pay of course!

Take software for example – I’m looking at purchasing a bit of kit in the coming weeks and it’s retail value is something close to $3200. Now I my world that’s a lot of $$$ for anything.

After doing some homework I realised as a current university student I am entitled to purchase the same bit of software for – wait for it – $600

That’s a heck of drop is it not?

What’s changed, the software hasn’t but my perception of it’s true value sure has.

While I’m happy to save the $$$ I’m also gobsmacked at the margins both publisher and retailer must be making on this software in the retail environment.

The margin above underscores the initial point I started with – just how important the perception of value is in affording the seller a position where a premium pricing strategy can be employed.