Seth Godin has a recent blog post on pricing power. Here’s a quote that stood out to me:
We often find ourselve stuck, matching the other guy’s price, or worse, racing to the bottom to be cheaper. Cheaper is the last refuge of the marketer unable to invent a better product and tell a better story.
There’s a school of marketing that says you have to have the lowest price. That’s basically Walmart’s marketing position.
I don’t buy it, no pun intended. If people only buy the least expensive cars, then how does Mercedes Benz stay in business?