I read an article the other day that speculated that one famous football star, as a result of the sacking of his manager, might be seeking a move. However, the move could cost the suitor club around £150 million, including wages of £300,000 per week after tax.
So, for kicking a piece of leather around a park for 90 minutes each week, a footballer’s ‘price’ is £300,000, while that of a junior hospital doctor, who saves lives and works 57 hours per week, is £711! (No, don’t get me started on the supply and demand argument!)
It got me thinking about how the price we are willing to pay for something is so linked to our perception of value, and therefore can be really quite ‘emotional’. Yet, although pricing (Marketing course, Module 12) is probably the most difficult and least glamorous of all the marketing mix elements to fix, especially if we are talking about new products or services, it is THE direct revenue earning factor in all we do in marketing.
I was reminded of its importance and value when, during a tea break at a very prestigious high-level international marketing conference I attended a number of years ago (at which 200 people were present), I noticed an adjacent conference going on in what appeared to be a very large room. On enquiring what the conference was, I was told it was a three-day conference on pricing AND that it was attended by some 2,000 delegates!
Do you find pricing a bewildering issue?