“How to Stop Customers from Fixating on Price” by Marco Bertini and Luc Wathieu. As the market gets more competitive, competition forces commoditization of products and services. This causes price-fixated clients who are less receptive to innovation or marketing. Ironically, to get them off the Price Fixation (my words)—you get introduce 4 price-focused levers that call attention to how your offering is different and worthy of a premium price. Here are the four in brief:
1. Use price structure to clarify your advantage. Example: Rather than tout the complex engineering that went into new tires, Goodyear started to sell tires based on mileage consumers could expect.
2. Willfully overprice to stimulate curiosity. Example: Think Apple, which prices at a premium, thus attracting consumers to wonder—What’s going on? They stop and focus on features, often loss in commoditization.
3. Partition prices to highlight overlooked benefits. Example: Think about your cable bill…broken into components. Gets you to pay attention to often overlooked services.
4. Equalize price points to crystallize personal relevance. Example: Think Apple again, when Steve Jobs priced all I-Tunes at 99 cents.
Read all the full articles in the May 2010 issue. Well worth your time.