What are prices like in Moapa Tribal Enterprises?

In what circumstances is having the more expensive product (or service) the most successful strategy?

• Often there is an assumption that to grow volume and profits requires a race to the bottom, that the lowest price will win - but there are exceptions. A few examples to spark discussion: - when hiring a lawyer you may not want to go with the lowest rate lawyer especially as the value of the service goes up. (i.e. a low cost flat rate for a routine document is one thing, but you probably shouldn't go with the cheapest lawyer to defend yourself or your company in court) - the price can be a signal of the value and of the product's audience. If you price software at a very low price point you will likely be overlooked by enterprises as an option (even if you meet or exceed their requirements). Raise your prices (or change your pricing model) and suddenly an enterprise buyer may compare you to still higher priced competitors and at least evaluate your software as an alternative. - when i see a new restaurant or cafe I can usually predict whether or not they will succeed by looking at the prices they charge. If they are trying to be really cheap - promoting really low prices then they will almost certainly face more challenges than a similar establishment charging higher (but not insanely high) prices. The balance is tricky and definitely flexes - what I consider reasonable many Yelp reviewers might think is too pricy (but then I'm not a college student). But if a business gets this right - charges a fair, sustainable price for their food and drink then they have the resources to use quality ingredients and to not cut corners. All of which is typically then reflected in the food and the service - creating a positive feedback loop. Can you think of specific examples or other markets where a higher priced option can often do better than the lower priced ones?

• Answer:

  The most prized brands one can survey over the last 50 years never built their business proposition on price.  Some examples: Apple Mercedes Benz Volvo Lexus Walt Disney Prada Gucci Viking Stoves Boeing Four Seasons Hotels Tiffany And Company None of these companies really focus on being the lowest price.  They tend also not to try to go far to explain value. From a very human perspective every single purchase one makes is an emotional decision.  Yes even the most mondane purchase.  We can see this with a number techniques of tracking Brain activity and MRI images. The very last moment in your buying choice you set off a series of Neuro-Peptides that are highly addictive and are designed to enforce a reward pattern.  All of us, even the most logical buyer, can not escape this natural process-- no more then one could hold one's breath for a long time. The rather unknown new science of Neuro-Peptides can offer us deep insights on all that we do. The very wise visionaries knew this pattern, likely as an internal instinct rather then the chemistry involved.  They knew that emotions will always trumps cost in the end.  I am sure one can argue that the Neuro-Peptide release of getting a "Good Deal" is just as strong.  But the effect tends to wear off rather fast and leaves one looking for the next "Good Deal".  The brand loyalty ends as soon as the prices go up.  Clearly some consumers believe the time taken to get a "Good Deal" out weigh opportunity costs lost on doing other, possibly more valuable things in their lives.  As one may suspect in these cases the Neuro-Peptide release is more closer to "Flee or Fight" instinct then the "Love" instinct that drives most buying choices. Think of the product or service company you most love.  The odds are rather high that these things cost more then the averages of competing products.  Your love of the product, which you may or may not have gotten a "Good Deal" on, is based on your emotions not the mathematics of true value. If you take a nice Saturday afternoon and watch the events unfold at any Apple store, you will walk away with amazement.  When the convergentes of Design and Utility meeting with a smattering of Style, the effect is transforming to the uninitiated.   Those of us that frequent http://Quora.com can have a great technology bias and assume that "everyone" knows these products.  A vist will show you that the opposite is true.  With open eyes and a scientist's mind watch the enchantment. The side issue with anything in technology is of course, some things will become obsolete.   At this point one becomes reliant on the guidance they assign to the focus these companies make in product announcements and usually adopt a decidedly  "skip every other product release" upgrade path.  Some can not resist the seduction each release brings (guilty). This brand loyalty tends to perplex some experts because it seems to go against group logic. Logic is not in the driver's seat, our emotions are, although our emotions are more then happy to let logic feel like it is calling the shots. I can not think of many companies that have created a consistant image to the world if the primary message is "We cost less".  The WalMart and Costco examples show that there is clearly a cycle of love and maybe hate these companies project with the consumer.   For example: the consumer become enraged if the price of a product can be found less at another company.   These companies do very well but they have painted themselves into a corner, all the way to China.  When the relentless drive for lower cost labor runs out, the concept may very well end. The new version of Free the Internet has initiated has created a level of expectation that ultimately will be the undoing of any company if they can not find a way to at least project value.  This type of Free has conditioned us to expect far more then one should from just about all companies. To achieve success in the rare space of the companies I listed above, a company requires DNA that carries over to everything the company does.  Some companies are much more focused on this intent then others.  This DNA must transcend time and fully infect every aspect of the customer experience In my view if a product was engineered and built with the best design concepts, the price  becomes intwined with the entire experience.  It is hard to pick many of the products from the companies I listed and easily sperate the design and the cost. All ego boasting aside, you will find people genuinely proud of the fact they paid more for these fine products or services. More often then not the reasons have nothing to do with "Luxury".  When a company gets it right, all of us know it, because we can Feel it. In the end Emotions trump Cost and we fall in love, with timeless elements. .