tag:blogger.com,1999:blog-20403719.post4527961181102647838..comments2023-10-31T06:01:54.153-04:00Comments on Pretty Lady: More money, please, sweetheartPretty Ladyhttp://www.blogger.com/profile/00342833918614545778noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-20403719.post-62884094526659749142007-08-01T16:10:00.000-04:002007-08-01T16:10:00.000-04:00Okay. I apologize for my confusion.Okay. I apologize for my confusion.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20403719.post-56402391567753764952007-08-01T14:37:00.000-04:002007-08-01T14:37:00.000-04:00I am not saying that my product is not a luxury, D...I am not saying that my product is not a luxury, DuckMan. I am saying that perceived price/value ratios are not linear, even when the service provided is not a luxury. As DC said.Pretty Ladyhttps://www.blogger.com/profile/00342833918614545778noreply@blogger.comtag:blogger.com,1999:blog-20403719.post-77721432239766092172007-08-01T12:38:00.000-04:002007-08-01T12:38:00.000-04:00Pretty Lady, your product is considered from an ec...Pretty Lady, your product is considered from an economic standpoint a luxury because when you raised the price (presumably with no change in the quality of the product), you discovered the demand for it had increased. That fits an economist's definition of a luxury.<BR/><BR/>In the example you provided, there are two different product-providers with products of differing quality and price. That is a somewhat different situation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20403719.post-15138953473633305212007-07-31T19:06:00.000-04:002007-07-31T19:06:00.000-04:00Perception of value is a big deal, and it doesn't ...Perception of value is a big deal, and it doesn't just apply to high-end luxury items.<BR/><BR/>Commodities aside*, asking price has a lot to do with a customer's notion of the value of what he's getting. What's the difference between a $5 haircut and a $20 haircut, Duckman? More than just the cost, and most people are quite aware of this.<BR/><BR/>I was not surprised at the result when PL raised her fees, especially if the level the old fees were associated with was bargain basement, five-dollar-haircut quality bodywork, and most especially if she can deliver at the level people expect for those higher fees. Then come the referrals.<BR/><BR/>*even commodities are somewhat susceptible to price = quality perceptions with good marketing. But that's usually a tougher sell.Desert Cathttps://www.blogger.com/profile/13656526816699347744noreply@blogger.comtag:blogger.com,1999:blog-20403719.post-55134044425496797452007-07-31T18:54:00.000-04:002007-07-31T18:54:00.000-04:00what, the chinamen don't deserve a decent wage? f...what, the chinamen don't deserve a decent wage? forget it, jake. it's chinatown.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20403719.post-91664690814863567512007-07-31T17:46:00.000-04:002007-07-31T17:46:00.000-04:00DuckMan, assuming you are not destitute, and you s...DuckMan, assuming you are not destitute, and you sustain a compound fracture in your pitching arm which requires surgery to set correctly, which doctor do you go to? The cut-rate alcoholic bargain-basement doctor who is one malpractice suit away from losing his license, who charges $400, or the surgeon at the local Presbyterian hospital who has done 100 of these surgeries in the past six months, and charges $1000?<BR/><BR/>Pursuant to this decision, would you consider that such service is a <I>necessity</I> or a <I>luxury</I>?Pretty Ladyhttps://www.blogger.com/profile/00342833918614545778noreply@blogger.comtag:blogger.com,1999:blog-20403719.post-20122990221161369882007-07-31T17:20:00.000-04:002007-07-31T17:20:00.000-04:001) Raising her prices has generated more new clien...<I>1) Raising her prices has generated more new clients, not fewer.</I><BR/><BR/>Pretty Lady, that comment suggests that your product is a luxury item and has "snob appeal". Your other numbered points are also consistent with that assessment. What I am suggesting is that your advice works for anyone who is selling luxury products (i.e., not necessities), but not necessarily for others.Anonymousnoreply@blogger.com