Should Price really be in the marketing mix?
[tag]Seth Godin[/tag] makes an astute yet incredibly simple point about price – people are just not really that bothered!
He quotes the 118-118 equivalent in the USA. People call, get the number and go. Done. They are not bothered if 118-500 is cheaper.
Equally, people spend more money on travelling to out of town wholesalers like Costco than they save when buying the shampoo they went for in the first place! (I use the shampoo reference becasue i am indeed guily of this!!).
If you create the right atmosphere (Costco – discount mentality) or give someone something they want with NO messing (convenience mentality), people will be glad to pay for it.
Consider the Ralph Lauren store in Paris or indeed in any flagship store worldwide. The last time I went, it was all dark wood and very, very expensive looking. Had I been buying, I would have had no problem justifying the 60 euros.
BUT, would I pay Â£45 for the same shirt at TK Maxx in the UK? No bloody way!
By creating the environment in which people feel able to justify the cost (through either convenience or appearance) people WILL pay the price you charge – and the same applies to an online store too.
Create the environment in which people feel your product or service belongs and they shall buy!