When you buy a product or a service from a seller, you basically buy a ‘solution’ which shall deliver you certain ‘value’. So, the price of the same is not just the ‘cost’ of production, but the ‘value’ you enjoy. That’s why we use the term ‘value for money’ frequently. Isn’t it?
Yes, as I understand that, as a seller, there are many parameters which impact on the pricing of your products/ services. The cost vs the value you deliver, the market, the buyers and importantly the right branding you have done in the market – all of them impact on the pricing of your products. Again, the demand-supply game influences it the most in the market you operate.
When buying a bunch of good note books, as a part of my new year plan, the young local seller gave me a smile. He said, “Thank you, Sir. In the post Covid times, we see customers bargaining on everything. But, you did not.” While saying so, he gave me a good price. Lovely!
It is always a challenge to rightly position your products/services in a given market. But what do you do, if the market doesn’t respond well even though you think you are delivering good ‘value’ to the prospective buyers or customers? Should you wait and watch or change the line of your products or leave the market to search for better alternatives? Do we have any readymade answers? Perhaps, No.
It is also true that many local sellers keep prices of their products or services a little high as they know that many buyers would bargain. In general, the sellers can really operate smarter than you the buyers. So, what’s the point in wrestling with them on the price? What do you say?
Now let’s talk about closing a good salary when you opt for a new job. The same ‘bargain’ game takes place here. Demand-Supply issue also influences the decision on both sides. But, if you understand your value well & think the org is good for you too, never give up to hit the figure what you really want. Good luck!
In the piece of thought, I try to give 4 perspectives, i.e. of the buyer, seller, job-seeker & job-giver. It is true that, in any given market, everyone wants ‘value for money’. That’s fine. So, I am sure, if all the parties understand the value of what they ‘sell’ or ‘buy’ then there shouldn’t be any point of bargaining!
In the corporate world we name it as ‘Negotiation’ and in the competitive environment, good managers are expected to have ‘the power of negotiation’.
But, really, with whom do we negotiate? We negotiate with others or with ourselves in every moment of life!
(Writer is a media industry veteran turned entrepreneur. Views are Personal)