A core concept of the Slingshot Framework is to enamor, deligh, and infatuate customers, so that they feel a strong emotional connection to your brand and market offering. Interestingly, a high price point can have the effect of strengthening such positive affiliation, as it implies a more exclusive and special offering. Think about Starbucks or Apple, both of which feature premium price points that actually help to drive customer attachment. And here is another example of the same phenomonon.
Peloton, a company that makes home exercise equipment, originally priced its stationary bike at $1,200 – consistent with the pricing of other companies in the very crowded market space for higher-end bikes. But to reflect how much superior its bike is to the competition, Peloton took the radical step of rasing its price to over $2,200. And guess what? Demand and sales for the bike actually went up! See the specifics here:
#pricinginnovation #customerexperience #marketdisruption