Could an ice cube be worth $8?

Gläce Luxury Ice apparently is. You can choose from the traditional cube shape called G3 (G-Cubed) or the Mariko sphere.

Sweep away all the hyperbole of the purity of the water, the re-sealable pouch that avoids contamination, the melt rate and the hand crafted surfaces and what you’re left with is ice that anyone with a freezer can make for a few pennies.

Does is sell? Yes it does, to people who put on luxury events.

What does this mean?

Do some people have more money than sense?

No. It means that price and value are perceptions.

When you sell ice at $8 a cube what are your really selling?

You’re selling hedonism, decadence, self-indulgence.

You’re not selling frozen water.

The Harley Davidson company doesn’t sell motorbikes – it sells freedom.
Nike doesn’t sell sports wear – it sells winning.
Revlon doesn’t sell cosmetics – it sells hope. (That’s their marketing department’s explanation, not mine!)

Pricing extremes are important to profit.

You can’t be the cheapest in the market unless your whole business is geared to price control and volume (think Ryan Air).

You can be the most expensive if you know exactly what you’re selling – as with the Glace Ice example.

If you go with mediocre, your profits will be mediocre.

Every product or service has something other than price to distinguish it from the competition – even if that is only the words you use to describe it – the perception you create.

Figure out what feeling you want people to have when they buy from you.

Figure out who will pay for it.

That’s your market.

Go get it.

If you’d like  help with developing your pricing policy just ask

See more posts on pricing:
Poor pricing is what keeps most businesses stuck