Price or Superior Product – which will win?
May 19th, 2008
There is a war that’s been raging for many a year. It’s one that a lot of companies from all different industries wage every single day.
On one side you have a less-expensive product. Plain and simple. It kinda looks and feels like the others and it performs the basics. But you know that it’s the least-expensive of all the options. And while you have some extra money in your pocket, in the back of your mind, you’re wondering just how long that new product will hold up. Some people are bargain-shoppers and love the thrill of the hunt (that’s you, Mom). And when they find that cheaper alternative, they feel like they win – no matter what. So they choose savings over performance and quality.
On the other side you have the superior product. Hands-down, it’s better in all aspects. It’s crafted better, it performs better, and yes, it costs more. A lot more. For this camp, they value performance over savings. There is less money in the pocket, but with it comes confidence.
So I ask you, can members in either of these sides switch? Or do we all sit on the fence and have an either/or decision-making process depending on the situation? Even as a creative company, we get the calls for those that want to spend as little as possible and get buy and we get calls from those who know what it takes to be successful.
This war will never end and the two will always be separated. I have no idea where I was going with all that, but it’s something that popped into my head as I sit here in a meeting.
Other posts by Spike.
dave says:
This is exactly what’s going on with the web and with Twitter. By virtue of the fact that it’s down frequently, people think offering some sort of payment scheme will rectify the problem magically, regardless of how disadvantaged the free users become when suddenly the site goes down for them, but not for premium users.
Honestly, I think it’s a terrible argument, it’s a terrible proposition and you’re right. It’s an infinitely split dichotomy of a battle that will never be won.
May 19th, 2008 at 1:17 pmBIG Kahuna says:
Well as a branding guy I’d like to think that all products and services can be differentiated but alas they cannot.
Not because they couldn’t from a branding perspective but because those business owners that sell on price won’t let it. Selling on price to me is the kiss of death. Those that buy on price are not my kind of customers.
But if the product or service is not different enough or better enough price will play a role.
May 19th, 2008 at 10:06 pmStu says:
Not sure what the definition of “win” is, but I think Wal-Mart would make the case that price wins, and wins in a big way. It might be a soul-less win, but a W is a W.
May 20th, 2008 at 7:15 amBIG Kahuna says:
I honestly can’t even walk in a Wal-Mart. It stresses me out and I feel dirty. I despise Wal-Mart but for who they target by price and obviously do well.
I’m proud to say I’m 853 days Wal-Mart free!
May 20th, 2008 at 12:24 pmMatt says:
This is a constant struggle in my heart… I know what I WANT but then I question if it is really what I NEED. For example, Kitchen knives! I love to cook and when I got serious I knew I needed a new knife (one that didn’t come in a 45 piece set from Sears for 45.99) and there was the struggle. Should I look for a knife that was cheap and would do the job or get one of the proven knives from a respected brand.
I ended up buying a MAC knife for more money than I had ever though about paying for a knife but I use it for EVERYTHING. The same knife I use to halve a spaghetti squash I use to dice onions and even to section oranges and the like.
For me I have repeated the cycle too many times with vacuums (dyson vs. the 50 dollar special), computers and everything else and I have learned my lesson. When I wait for a while and make an epic purchase of a beautiful and functional object it fulfills my life WAY more than an impulse buy or cheap alternative ever could.
May 29th, 2008 at 8:29 am