Buying Behaviour

When Williams-Sonoma introduced bread machines, sales were slow. When they added a “deluxe” version that was 50% more expensive, the original started flying off the shelves; the first bread machine now appeared to be a bargain.

iPhone high end version and lower version is actually similar in hardware but matter of a software to limit the available functions and set a different marketing price for what they want to get main profit margin they expect.

Tversky and Kahneman conducted the following experiment: when contemplating the purchase of a $25 pen, the majority of subjects would drive to another store 15 minutes away to save $7. When contemplating the purchase of a $455 suit, the majority of subjects would not drive to another store 15 minutes away to save $7. The amount saved and time involved are the same, but people make very different choices. Hong Kong People are known to be good at this practice… Searching in internet, Carousell, facebook Chrono24 for the lowest offers and then they select the one they want to approach.

Salvador Assael, the Pearl King, single-handedly created the market for black pearls, which were unknown in the industry before 1973. His first attempt to market the pearls was an utter failure – he didn’t sell a single pearl! So, he went to his friend Harry Winston, and had Winston put them in the window of his 5th Avenue store with an outrageous price tag attached. Then he ran full page ads in glossy magazines with black pearls next to diamonds, rubies, and emeralds. Soon, black pearls were considered precious. In short, marketing is needed for making luxury items sales possible. 

Setting a price

Every item has a price. I purposely don’t want to put an over high price tag and wait for negotiation, and I think wise buyer know the real price and low bailer will be filtered away by doing this. I think negotiation is not my style, and if one day this is likes some supermarket sales tricks buy one get one free, you had better beware on the luxury watch you bought in this offer.

HK Snob