Cost vs Value – a perception

Value is so important and it impacts how a company prices a product and how we buy. Here are some thoughts of mine below.

People will almost always have a price point in their mind as to what a product should cost. They may be wrong, but they still have a price idea. If a product is not in the price range, the person may not buy the product because it is seen as too expensive or too cheap. I will use a fairly simple example to make the point.
I go to buy a toothbrush. If a toothbrush costs only one dollar, I won’t buy it because it has to be “cheap.” However, if I see a toothbrush for $20, I won’t buy that one either. “Who would pay $20 for a toothbrush?”

Companies need to understand the general perception of price ranges from consumers. Consumers can be persuaded that your price is okay, but you need to know if there may be resistance.

Thoughts?

#8 Customer Relationships

Lots and lots of really good comments on customer relationships. That is what it is all about.

On one side, the business wants to create a relationship with a customer for a better chance to keep the customer around. On the other side, the customer has to feel some connection to the product or service. They have to see themselves with or using the product. This is very true for local or regional businesses, where referrals and repeat customers are a must. However, for large corporations, customer still need to feel some connection. It is about image. I can see myself driving that car. Think Pepsi or Coke – the customer likes to have fun with friends. The customer can feel a connection with the product.

No matter how much a company wants to create a relationship with me, if I don’t feel a connection, the chances of a sustained relationship is limited]

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