The fair price?
It has been a while since I completed the HEAO (international marketing). I lost a lot of what I was taught there. But what still stands on my mind are Kotler's 4 P's: Price, Place, Product and Promotion. They have been rammed in and I know them as the marketing mix.
While browsing LinkedIn I was recently drawn to a message that started with the sentence: 'At the right price'! With two exclamation marks. This wasn't just a message, the writer wanted to reinforce it. The picture accompanying the message gave further colouring with the text: 'We are honest about the price'. This company gives the right price and they are honest about the price. Isn't that crazy?!
The Price. A P from the marketing mix. Most companies that distinguish themselves with this P go for a positioning as cheapest. I remember learning on the same HEAO how to calculate price elasticity. What price are consumers willing to pay and how do you optimize your turnover? What is the fair price? A good question. Is that the price you as a consumer are willing to pay? Or is that the price a product or service is worth? A very difficult discussion. When the new iPhone X came out, it had a - in my opinion - ridiculously high price. Until a connoisseur explained to me what this device can do. Surely it was worth it?
The relevant message on LinkedIn came from a kitchen farmer. I remember buying my kitchens well. The hassle with negotiating. That half the price went off in no time. "No, ma'am, we can't go any lower. That I'd run away and get another 30% off. I never got a good feeling about that. Beautiful kitchens, but always that doubt. Did I pay the right price?
What I find honest in the LinkedIn message is that everyone has to get used to 'Equally the right price'. The staff, who were used to giving a lot away, now have room for a real conversation. But also the customer, who actually walked into the kitchen shop 'with the knife between his teeth' to immediately negotiate that too high price, can now put his wishes on the table and start a conversation.
This specific kitchen company is taking a nice course. In my opinion it is distinctive in this industry, with the focus on the P of Price. Not as cheap, but as fair. Anyway, now that I'm looking for a new kitchen. I'm also curious what the fair price of such a kitchen is.
This blog was written for CustomerFirst and published on 26 September 2018
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