Not surprisingly the first question everyone is asking about the Google Chromebook Pixel is Would you pay $1300 for a cloud-centric laptop?
This is all about the launch of this impressive laptop that everyone is talking about.
The Chromebook Pixel (yes, it’s really called that) is on sale now in the Google Play Store and will start shipping next week. The computer costs $1299 for a Wi-Fi-only edition; an LTE-enabled version, meanwhile, will become available in April for $1449.
Pricing is often the sticking point in making a sale and usually the ideal is that the customer decides to buy before even knowing the price.
That’s the approach that Jon Manning is suggesting in pointing to the lucrative opportunity you’re neglecting
. He’s referring to the fact that many leading companies have a long tail of products they sell in relatively small volumes.
Long-tail products are those that are purchased infrequently and in small volumes. This implies that customers probably have pricing amnesia: they’re unlikely to remember what price they paid for the product the last time they purchased it – if, in fact, they’ve ever purchased it. Should those obscure products be priced at a high rate to reflect their scarcity, or at a low rate to reflect their demand?
He suggests that it’s the high price approach that will work and deliver maximum profitability.
It’s an example of the Willingness-to-Pay factor
particularly in B2B Marketing. This is one of the many situations that are covered by pricing effectiveness solutions
. This answers questions such as are your product prices contributing to lost deals, or are you leaving money on the table with pricing that is too low?
If pricing is the first thing the customer is thinking about, then you are dealing with a critical factor in sealing the deal. If pricing is the last thing to be considered, then you have many more options available to you.