We hear this sometimes from potential clients. It was a concern of ours at the beginning, too. But over the last ten years we’ve adjusted prices billions of times. We haven’t heard a complaint from a consumer yet. So, let’s bust this myth.
Adjusting prices will hurt my brand. No, it won’t. That’s a myth. We’ve been doing it for the biggest brands for years without causing harm.
Why? Because fixed prices are actually a myth. They don’t exist. And we (consumers) seem to be fine with that.
How much is a craft beer? A pizza?
Don’t know? The reason is that these prices change all the time. There is no fixed price.
Craft beer has a happy hour when prices go down. They have limited runs (“saison”) when prices spike up because of high demand for a limited quantity. Ever wonder why craft beer prices are usually written in chalk on a blackboard? Because it’s easy to change them.
Check the flyers you get in your mailbox advertising pizza. They are constantly promoting different prices. The variety is dizzying. Two mediums for $20. Pizza with 5 toppings, extra large for $18. And that’s just for delivery to your house, in your neighborhood. Move a few neighborhoods over and the prices are totally different again.
Prices depend on context. You’ll pay between $35 and $60 for a bottle of Grey Goose at the liquor store in the afternoon. At a table at a nightclub twelve hours later you’ll pay between $500 and $1,000. Same highly branded product, different context = different price.
Here’s the average price and range of prices for normal everyday goods in New York City.
Here’s the difference between those average prices in New York City and the same products in Louisville, Kentucky.
Those are offline examples to show how common different prices are. Here’s an online example.
Do you change your prices? Why not? Follow the lead of the big brands and local retailers that adjust their prices without a negative reaction to their brand. Or stop competing and become irrelevant like Sears in the example above.
Well, this was a twofer. We busted the myth that adjusting prices hurts brands and the opposite myth that fixed prices exist. Woohoo!