There are many reasons why Americans do not feel positive about the economy. Even though we read and hear that inflation is easing, many Americans do not feel secure and financially stable. A significant portion of Americans are being left behind.
Price is about perceptions. It is also about reality. Which is to say that price involves both perceptions of value and the reality of affordability. The former is competition, expectations, benchmarks and benefits. The latter is what’s actually in the wallet. Value comes into play only when affordability is no barrier.
The outcry faced by Delta Air Lines over proposed changes in its SkyMiles and SkyClub programs last Fall is a good reminder of the risks faced by brands looking to take value out of their products and services.
Business leaders often confuse pricing methods with pricing strategies, so it is important for us to distinguish sharply between the two. Pricing methods yield a price number as a finite output. These outputs can vary significantly, depending on the information sources used.
Recently, I took what felt like a fairly expensive Uber ride from the San Francisco airport. Ridesharing used to be far less expensive than taking a taxi, but that is not the case anymore; in many places, it’s equally expensive, if not more.
