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lowered sales volume allowed IBM and its clones to become the industry
standard. Mac almost died as a result.
Order now -> http://myps.sitesell.com/
Make Your Price Sell!
2 6
Offline example -- The VCR. Pioneers covered the R&D costs and delivered
fat profits. Over the years, the VCR became fiercely competitive and prices
evaporated. Today, it’s a commodity. DVD is following the same route.
Offline example -- Mercedes Benz is an excellent example of luxury pricing.
Unlike the VCR, Mercedes can sustain its top pricing model for as long as it
delivers a superb automobile and maintains the image.
Online example -- High-end web hosting and design companies capture a
niche market based on their uniqueness which can’t be copied. These
companies usually can only handle a limited number of clients at a time.
Customers are willing to pay a higher price for this selectivity. This is a solid
strategy for any service, if you can walk the walk!
Before you adopt this strategy, remember that market penetration (i.e., unit
sales) will be hurt. Does that make a difference to you? If so, then decide when
you will switch strategies.
One more point... watch the public relations side of this. If people hate your
company for taking advantage of them, your death will be quick and painful.
One thing Macintosh always did right -- their users loved (and still do!) the Mac.
They never felt gypped, even though they could have bought comparable
computing power for far less money.
2.4.3. It Applies to Services, Too
Professionals and consultants often don’t give enough thought to the rationale
behind how they price their services. Basic goal-setting and strategizing upfront
will clarify matters. For example...
Pretend that you are in the price consulting business. One of your services