The fair price?
It's been a while since I finished the HEAO (international marketing). I have lost much of what I was taught there. But what I still remember are the 4 P's of Kotler: Price, Place, Product and Promotion. They have been rammed in and I know them as the marketing mix.
While browsing on LinkedIn, my eyes were recently drawn to a message that started with the sentence: 'Right price!!' With two exclamation marks. This was not 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 right away and they are honest about the price. Not surprising, right?!
The price. A P from the marketing mix. Most companies that distinguish themselves with this P go for a positioning as the cheapest. I remember learning how to calculate the price elasticity at the same HEAO. What price are consumers willing to pay and how do you optimize your turnover? What is the fair price? That's a good question. Is that the price you want to pay as a consumer? 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 message in question on LinkedIn came from a kitchen farmer. I still remember buying my kitchens well. The hassle of negotiating. That half the price was deducted in no time. "No, ma'am, we can't go any lower." That I would walk away and still lose another thirty percent. I never had a good feeling about that. Beautiful kitchens, but always that doubt. Had I paid the right price?
What I think is fair in the LinkedIn post is that everyone has to get used to 'Right the right price'. The staff, who were used to giving away a lot, now have room for a real conversation. But even the customer, who actually walked into the kitchen store 'with the knife between his teeth' to immediately negotiate about that too high price, can now calmly put his wishes on the table and enter into a conversation.
This particular kitchen company is heading in a good direction. In my view, this is distinctive in this industry, with the focus on the P for 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 September 26, 2018
Don't miss another blog? Sign up for my monthly CX Greetz!
*****
Nienke Bloem is often called the Customer Experience speaker in the blue dress.
She's a global CX thought leader, educator and a global keynote speaker who inspires audiences with best practices and proven methodologies. She leads a speaking practice, a CX game company and a training business; she breathes Customer Experiences and is author of two CX books.
Her two-day Customer Experience Masterclass is known as the best program to prepare for your CCXP and she is the go-to person for CX leaders who want to advance their leadership and bring direct results from their Customer Experience transformation programs. Since 2020, she hosts a CX Leadership Masterminds program and helps leaders spice up their leadership and deliver an engaging CX Story including a solid CX Strategy. Besides, she is a modern-day pilgrim and found the parallel with leading customer centric transformations.
With her over 20 years of corporate experience, she speaks the business language. Her keynotes and education programs in Customer Experience are inspiring and hands-on. She is one of the few Recognized Training Partners of the CXPA and it is her mission to Make Customer Experience Work and help you deliver business results.
