Thursday, August 28, 2008

The Price is Right?

A part of my job in Advertising and Marketing is to think about the perceived value of products and services for my clients. What are people willing to pay for something and what can I do to enhance the product and how is it positioned? The goal, of course, is to find that point on the cost curve where profit will be optimized. Price and production are a part of it but I also have to think about perception as well (oh yeah, place and promotion go into it too!).

If people don't think you product is worth what you are charging, then you will go out of business quite soon. Obviously that is why branding is such a huge issue to all of the luxury companies these days. If you pull that curtain aside, it can be difficult to tell some brand's products from other lower priced brands.

Most of the time I'm aware when I am being the object of a marketing campaign. But sometimes I feel the product is worth it. Or at least it is for me. At other times, there is no amount of branding that can push me to spend a single dollar.

Then there are those products that I like and would buy but my perceived value does not match up with the price tag shown. That's how I feel about Té Casan's shoes. They're cute. I like them. I'd buy about five pairs right now but I just don't feel they should be priced the way they are (JCrew's shoes are another one in this category).

Take the Natalie Portman Plath pumps. I think they are adorable. I love the pink. I love the purple. I love the pom-poms.

Cute, right? And vegan. They make me happy.

But I just can bring myself to spend almost $400 for them. Not sure why that is. In my mind they should be about $85. Maybe a hundred. But four hundred?


The fact that they are out of my size and therefore unavailable to me does push them up the curve a bit, but still not $400.

I wonder if they did their focus groups.


Jazial said...

They're not just cute shoes, they're not just vegan shoes, they're cute vegan shoes by Natalie Portman named after Syliva Plath! If I had a spare $400, I'd totally be buying them.

Ashe Mischief said...

I always avoided your blog, for fear of shoe lust.

But I have to kind of love you always for getting all marketing geeky on me, and combining it with shoes...

Princess Poochie said...

Awwwww, Thanks Ashe!



fashiontemptress said...

I'm sorry but for $400 there better be some leather construction in the shoe. I can understand appreciating it from a Vegan standpoint, but to me, plastic = cheap.

WendyB said...

I'm with fashiontemptress. I can never bring myself to shell out any money for Stella McCartney's politically correct but basically plastic shoes for the same reason.

Princess Poochie said...

Percieved value at work!