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Thursday, November 29, 2007

Most people don't really care about price...














At least according to Seth Godin:
Of course, you've heard the objection. "It just costs too much."

Today's Times reports that 411 accounts for more than a billion calls a year - at just one provider. That's more than a billion dollars a year being spent for a service that is truly a commodity - you want the number, here it is, bye.

And yet, Easy411 provides precisely the same service to callers for half the price. Why doesn't everyone use them? Because it's not just the price. It's the hassle and the set up and the "I didn't get around to it" nature of saving a few bucks.

Example 2: check out the parking lot at Costco. Lots of $40,000 or more cars and SUVs in the lot, people who wasted a few shekels worth of gas to drive out of their way to invest an hour of time to save a dollar on a big jar of pickles. These are the same people who will spend an extra $100 on an airplane ticket to save a few minutes in getting home after a meeting.

My point, and I do have one, is that price is a signal, a story, a situational decision that is never absolute. It's just part of what goes into making a decision, no matter what we're buying.
What do you think? Does price matter?

Or is quality remembered long after price is forgotten?

HT: Seth Godin

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