Pricing is a strategic component at your disposal. As part of the right combination of attributes, both low and high pricing extremes can help to induce infatuation.
A low strategic price point can be an infatuation enabler to a mass of new consumers who consider access to your offering as a life-enriching experience. This is the case with the Nano, the world’s most affordable car, whose story I discuss here on my blog and in my book, Slingshot: Re-Imagine Your Business, Re-Imagine Your Life. A high strategic price point, on the other hand, can act as an aphrodisiac to those who can afford it. After all, a high price is linked to a perception of status and quality.
In my latest example of Slingshot-like thinking, see how mobile phone maker Vertu incorporates high price points as part of its strategy to induce infatuation. Via BusinessWeek:
What they’re buying is a smartphone that doesn’t look like all the others. They’re buying it because it’s exclusive, special, and rare. As I wrote in an earlier post on this subject, you don’t need anything fancier than a Timex Easy Reader if you want something on your wrist to tell time. Indeed, you don’t need anything more than a Kia Rondo if you want a car to take you from point A to point B. And yet Patek Philippe exists. And so does Rolls-Royce. Obviously there’s always a segment of the population willing to pay more for something not necessarily because it performs a task better than the least-expensive option, but because it does so with added luxury. Sometimes they pay more simply because they can—a classic Veblen good, for which demand increases along with price.
[Image via Digital Trends.]