Theres a discussion going on right now about pricing, so Im going to restart that discussion here: Sometimes craftsmen within the shoemaking trade express amazement at prices successful shoemakers and/or luxury brands are able to command. Id simply like to point out the service that the high price points perform. Ive read marketing studies, and if consumers are offered the exact same item at three different price levels, most of them will choose to buy the one at the middle price. They reason that the lowest price item must be defective, but the highest price one is too much, so they go for the middle. THIS is the true value of the high prices. A shoemaker who charges a living wage for his craft will still be charging far more than a factory-made shoe. If the cost structure is plastic trash at the bottom, factory shoes in the middle, and regular craftsmen at the top our shoes look like an over-priced status symbol. The shoemaker charging a living wage NEEDS someone out there charging more--it makes his price appear reasonable. There is a luxury market out there and theres nothing wrong with being a part of it. Some clients want to be able to brag how much theyve paid for whatever they buy. A luxury item is fulfilling a demand in the market too. But if your market is NOT the luxury market and youre depending on a more average clientele, then the prices the luxury market demands are doing you a favor by comparison.
Posted on: Thu, 11 Sep 2014 22:00:51 +0000
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