I constantly read Al Ries notes on AdAge.com and this time I just felt that some of his sayings should be on our blog for inspiring you [our colorful readers:-)].Ad business is continuously changing, but with this credit crunch it is changing faster and not necessarily in a positive way.
We all talk about pricing these days. The first thing I hear my friends asking about is price. How much does it cost? (no matter the subject, be it an icecream or a holiday)... I used to be a brand-lover and thus brand buyer; truly believed that price is not everything when deciding ... but nowadays, when everybody around me asks the same question, I find myself asking this in situations where I wouldn't have had in the past.
This is why I loved Al Ries writing and I advise you to take a few minutes and read.
"...in today's world, ideas and concepts don't seem to matter. What matters is "execution". If you can execute well, goes the thinking, you are going to win. Which in itself is true. What is not true is that execution is unrelated to the power of the ideas and concepts driving the business.
Variable pricing is one of those ideas. No matter how well you execute a variable-pricing strategy, you wind up undermining the brand... Yesterday's brand-loyal customer is today's price-comparison shopper..."
"High prices alone are not the problem. Often you need a high price to define your brand. Without its high prices, Rolex would be just another watch brand. And Porsche would be just another sports car brand."
Enjoy the full article on http://adage.com/columns/article?article_id=137108
