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, pictured here.
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.
This is one of the topics that I cover in my Work Smart Not Hard programme. If you’d like help with developing your pricing policy just ask
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.
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.
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 that is.
Figure out who will pay for it.
That’s your market.
Go get it.
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[…] It has everything to do with how your customers value what you provide them with, the value it adds to their life, the problems it solves or the delight it brings them. (See “How much would you pay for an ice-cube?”) […]