New attitudes to pricing
In a post credit crunch world I expect many things to be different, like our attitudes to: brands, consumerism, saving, recycling and prices. In a world a wash with credit, the retail price was perceived as being ‘the’ price – an amount carefully calculated by the retailer that applies to everyone. But now, with getting a good deal becoming the main motivating factor for many. Not paying the full price for anything means that discount or perceived discount is key.
So what could these new pricing models be?
Gentlemen’s fashion brand, Social Suicide, has taken this flexible pricing to heart. Combining it with the big idea behind their collections, its created a pricing model that provides a meaningful, changing discount based on external factors. For their Summer 2009 collection, inspired by the Beaufort Scale, discount was calculated by the daily temperature, as supplied by the Met.Office. So 28°rees; meant a 28% discount. For this Winter’s dictator collection, the number of followers on Twitter and Facebook brings a related % discount. For example 2760 followers means 28% off RRP.
A discounted approach is often seen by small software vendors, such as MacHeist, who bundle up software at huge discounts, then give away additional extras as away to attract followers, using their existing customers to spread their offer. We already see a tiered pricing with airline and train ticket providers, increasing the price closer to the expiry date.
How long before more retailers adopt a similar approach?
I look forward to seeing brands discount based on the number of positive comments, tweets of a term, customer rating, number of miles travelled, CO2 saved, bottles drunk and so on… Paying the RRP is so last decade.
Tags: credit crunch, discount, price, Social Suicide