After the remarks of “996 is nothing”, “we are” 715, white and black, nightclub “and” young people should choose Beijing, Shanghai and Guangzhou first “, a comment on the reprint of Weibo by Chu Xueyou, former vice president of Xibei, made the word” Xibei “hotly searched again because of the price rise.
A few days ago, Chu Xueyou, former vice president of Xibei, forwarded a microblog about Xibei’s price rise, which showed that the reason why Xibei and Haidilao’s price rise had a big public opinion rebound was that they offended a large number of microblog netizens. “After all, 95% of microblog netizens’ monthly income is less than 5000 yuan…” In this regard, Chu Xueyou’s comments on “learning” seem to express “approval”.
On the issue of pricing (too high), Huashan said in the Xibei project, “a good product is certainly not cheap, and the cost performance ratio will often destroy itself or even an industry. Because once everyone starts to fight for “cost”, the quality of products will naturally decline. Therefore, in dealing with the issue of “price increase”, President Jia holds the view of “if you don’t have any money, ask customers for it.” if you add a little more than 10 yuan to the customer’s unit price, won’t you come back with a few hundred million yuan? “
Huashan also said, “Xibei, if the unit price of customers drops, where can we make money with Huahua? Where else is “I love you”
Huashan also told a gymnasium that Xibei said, “just make good products, money is not enough to find customers.”.
If we combine the above words, we can find an interesting thing. Customers “voluntarily” support Xibei, and “take care” of China and China. In the end, Xibei’s high consulting fees are paid by consumers. Of course, we don’t talk about whether consumers should pay for Xibei’s consulting fees.
However, on the question of whether it is expensive, Xibei was criticized by customers a while ago. Jia Guolong’s response was “good raw materials, good technology and good equipment.”
On the issue of pricing, Liu run said, “high price is never the reason; high price is the symptom of product problems, customer positioning problems and incentive mechanism problems. The solution to high price is to change the product so that it can match the price and find the people who need it more. “
But Liu run’s words don’t seem to be able to bring any help to Xibei. After all, Xibei is very confident of “good raw materials, good technology and good equipment”. But the contradiction is that “customers don’t seem to recognize it.”.
This is the topic of this article: do good products have to be expensive? Can only high price save an industry? Do customers accept this view or not? For the same product, if the customer approves it, if you sell it for 10000 yuan, it will be followed. If the customer doesn’t recognize it, it will be too expensive for you to sell it for 100 yuan.
Maybe ten years ago, this kind of problem did not need to be discussed at all. But in today’s new consumption concept, if the brand side is still pricing and communicating with each other, it means that this enterprise is out of date. As soon as the old capital of this kind of enterprise is finished, it will be carried up by the times and thrown into the sea and become an invisible wave.
The cost of all products paid
It’s unethical to shift it to consumers
Let’s start with the various elements of price.
1) From cost transfer to joint price increase
A sales director is going on a business trip across the city, and the CEO says that if you go to work, all necessary expenses will be reimbursed by the company. If the sales director thinks that the company will be reimbursed anyway, let the money go. So he has opened a presidential suite by himself. Will the boss be happy to pay for such expenses?
For another example, an entrepreneur took the money of an investor when he was developing. In order to make the company run faster, the founder went to Ali and spent a lot of money to dig a “CXO”. After paying, the company’s accounts almost bottomed out. Should the investor carry the money?
Cost transfer is the basic common sense of business. It seems that it is inevitable for the downstream or upstream to carry the pot, and cost transfer is also covered with the coat of profit. The fruit farmer said that the recent weather was bad, and the price of Apple would rise by 30 cents. The supermarket owner could only accept this, but he was worried about what to do if it rose again tomorrow. So he also raised the price of apple in the terminal supermarket by 2 yuan, so that even if the fruit farmer raised the price again, he could cope with it. But what about consumers? The boss of the supermarket thinks that I have to be forced to accept the rise of fruit growers. So, do consumers have to be forced to accept the rise of supermarkets?
Price has always been a major part of the law. In the anti-monopoly law, there is a statement about “joint price increase”. For example, three noodle shops on the same street and three owners agree to increase the price at the same time. Even if the price only increases by 0.1 yuan, it also belongs to “joint price increase” and is subject to legal sanctions.
In short, arbitrary price manipulation is not only not allowed by law, but also not allowed by consumers.
2) Businesses have the freedom to control pricing, but consumers have the freedom to choose and criticize
Any pricing must take into account the will of consumers. A milk tea shop can stock up to 1000 cups of goods a day to make consumers have a good time. It can also stock up less and cause consumers to rush to buy. At the same time, it can increase the price by transforming the products into hot goods. But consumers have the freedom to buy or not.
Under the free market economy, businesses have the freedom to control and increase prices, and consumers also have the freedom to consume. Strong businesses have designs that set prices for consumers to accept, but as soon as consumers resist, businesses have to shed their skin.
When Haidilao’s price rises, a customer says no, Haidilao can say you like it or not. Once a large number of customers say no, the merchant has to say, “sorry, I’ve reduced the price. Please come back to eat.”
Moreover, businesses can price a certain milk tea at 1 yuan and sell it at a loss, or they can price it at 100 yuan. Businesses always think that consumers can be manipulated at will, but most consumers will say no, the price is too low, consumers who have seen the world will think that there is a problem with the product, or businesses have a routine; if the price is too high, consumers feel that their IQ is violated, no matter the price is too high or too low, consumers always have the freedom of choice to approve or disapprove.
3) Who should pay the cost?
From the perspective of chopsticks playing thinking, we can’t completely avoid the problem of cost when talking about price. We have to talk about the two major contradictions about pricing in the catering industry: 1) the contradiction between feelings and experience; 2) the contradiction between cost and pricing recovery cycle.
In the case of chicken, the owner of a restaurant thinks that Hainan Wenchang Chicken is more delicious, so he replaced all the ingredients with Hainan Wenchang Chicken by air. But in fact, in the eyes of local people, Wenchang Chicken by air is not as delicious as local Sanhuang chicken. The problem is that the air price is higher, and the actual quality difference is almost negligible.
In terms of pricing, the boss also included the cost of air transportation. The question is: the customers didn’t ask the restaurant to airlift food materials from other places. How can the cost be counted on the customers? And if you don’t count the customers, can’t the restaurant do “charity”? This is the contradiction between feelings and experience.
Feelings cost a lot. We often see such examples. In order to make the best beef noodles, a boss flew all over the world to “investigate” the beef from all over the world, from the south to the north, from Lanzhou to New Zealand. The cost was as high as several hundred thousand. Finally, the boss told a story about how sacred this bowl of noodles is.
And often, the boss thinks, high price is also sacred expression.
This is the second kind of contradiction, the related problems of paying cost and pricing recovery cycle. You see, in order to make this unique bowl of noodles, the boss “worked very hard” to fly all over the world. It took hundreds of thousands and months to launch the product. If it didn’t cost more, when would he be able to recover the previous cost?
But if we don’t pass on the cost to the consumers, will the boss carry it on his own? How can a boss make money quickly if he doesn’t marry a consumer?
To distinguish whether this is a common business behavior or a moral problem, we have to make clear two words: one is the free will of customers, and the other is the arrogance of pricing.
Setting a price is both storytelling and labeling,
It’s either arrogant or extremely insecure
There are two real stories of “great success” in the “beef world”. One is father Niu’s beef noodles. The boss told a story of looking for beef all over the world, and he successfully sold a bowl of “or beef noodles” for NT $10000. The other is diaoye’s beef brisket. This company not only pasted the label of “Hong Kong God of food”, but also told a story of buying out the secret recipe for NT $5 million, and even even sold it All the pots for stewing beef brisket have been patented.
1) Can the credit and hardship of product cost be transferred to customers?
We all know the stories of these two families, so we don’t have to tell them more.
The question is, if father Niu can tell a story, he can sell the beef noodles for NT $10000 a bowl. If father Niu can inject the cost of flying around the world into the beef noodles, why do consumers not approve of the fact that he has spent five million yuan, which is both a pot and a story?
Can the money of the boss’s flying and buying out the formula of God of food be passed on to the consumers?
It’s like a director asking his assistant to find a second rate star, and the budget is XX million, but the assistant is good at making the claim, signs Jackie Chan back, and then says, “Jackie Chan is only 10 million, I’ve agreed for you, and you can give it quickly.”. So, should the director be grateful for the money?
A boss wants to open a fried chicken shop. He goes to a, B and C to eat the local fried chicken, but fails to find a good product. At this time, assuming that the boss has spent more than half of the money, he has two choices: one is that he is too stupid to find a good product when the money is almost spent, so he should give up the idea of opening a shop; the other is that he does not find a good product at this time I’m very serious, which is worthy of praise. Then I’ll continue my research to the next place.
2) “For your own good” may not be paid by consumers
Most entrepreneurs choose the second mentality. After all, few people think they are stupid. The boss thinks that although there are no good fried chicken products in a, the local decoration style is good, and this element can be taken away. Although there are no good fried chicken products in B, the fried chicken dishes are good, and the fried chicken eating method in C is refreshing. After figuring out the problem, the boss took out the rest of the money to find a famous cook who can make fried chicken and bought out the recipe.
After persuading investors through PPT, a fried chicken shop opened. The shop integrated the decoration style of a, brought the fried chicken dishes of B and the fried chicken eating method of C. In addition, the fried chicken formula of a kitchen god was applied for the patent of some knives. The final fried chicken ingredients also abandoned the quick-frozen cold chain products and adopted the fresher three yellow chicken. The boss thought it was a new way It is a unique fried chicken lifestyle in the world, which young people must like.
The boss asked someone to write a brand story. He almost moved himself to cry when he thought of his hardships. Investors add fuel to the flames, say such a good story and original intention, you can sell more expensive. After all, from an ideal point of view, the more expensive you sell, the faster and higher the return of investors.
The boss told a hard story about himself, trying to attract the attention of the industry and the popularity of consumers with a new and packaged way of life. Then, is it OK to sell ordinary cold chain fried chicken for 20 yuan and the unique fried chicken symbolizing the new way of life for 90 yuan?
We can find that when pricing, the boss must take into account the cost of “glory” spent on ABC. Back to the case of Xibei, the boss thinks that the raw materials are good, the technology is good, and the equipment is good. He also perfectly uses one of Xibei’s original words, “just do a good job of the products, and the money is not enough to find customers.”.
So, do customers recognize such a good product and its ingenuity?
For another example, a boss invited a master out of the mountain. Due to the inconvenience of transportation, the old bone of the master went to the hospital on the first day of the city after a day’s bumps of ox cart, carriage and tractor to do bone setting. The master who had a good body made the most authentic dish. When pricing, the master’s bone setting fee and expert conditioning fee should belong to the boss Commitment or customer commitment?
3) The customer’s initiative to pay can be evaluated. No matter how expensive the customer is willing to pay, he will pay
It’s not impossible for customers to pay. There are only two evaluation indicators: first, after listening to the story of the master, will customers cry? Are you excited? Does dopamine and adrenaline accelerate secretion? Are you breathing faster? Is the pupil dilated? Second, do you feel closer to the brand after eating the product? Does the customer’s wallet and consumption power balance and have certain initiative?
Whether it’s storytelling or tagging, at least let customers see sincerity and necessity. Otherwise, the more stories a business tells and the more complex the tagging, the more customers will resist. Such a business attitude is either arrogant or self-confident. No matter which answer it is, the result will not be good.
Should pricing respect customers or price makers?
Storytelling is an expression of self-confidence and arrogance, which also has factual logic.
Take a bowl of stewed meat rice as an example. In Beijing, a bowl of stewed meat rice sells for 12 yuan, and customers can go into the store for consumption. The boss and customers can complete a series of consumption behaviors without saying a word, just relying on the four words “12 yuan” and a number.
If this bowl of stewed meat rice sells for 32 yuan, to let customers who have consumed 12 yuan of stewed meat rice come in, there must be a story at this time
For example, better environment, more portions, and another emotional story to tell customers that my stewed meat rice is different from other stewed meat rice. For example, other people’s pigs grew up on hormones, while my pigs were originally bred and slaughtered by listening to the Buddhist scriptures.
The arrogance of the latecomers comes from the fact that even if they are the same products, I will change some of the original elements and tell a story to the customers, and the price will go up. On the one hand, I am not confident and afraid that the customers will not agree with me. On the other hand, I am arrogant. Anyway, it is different from the previous ones, because it is unique and expensive.
From the perspective of the market, arrogance and self distrust are also the original characters of free competition in the market economy. If they are not arrogant, there will be no new products, let alone differences. Their value lies in breaking the advantages of their predecessors. Otherwise, how can the latecomer win?
We also see in the industry that some latecomers are telling stories even if they don’t raise their prices. Why?
For example, there used to be a brand of stewed meat rice in this street, but later a new brand of stewed meat rice was opened, which also sold for 12 yuan a bowl. The difference is that the new store told stories and pasted labels, such as my pork is better, the stewed meat formula is more pure, and rice is more suitable for stewed meat sauce.
This is not so much the arrogance and self-confidence of the merchants as the begging of the latecomers to the customers. The merchants use stories and labels to tell the consumers, “I hope my price and products can be recognized by you, and I hope you think I’m better than before. Please come to me for consumption.”.
As a matter of fact, in the consideration of pricing, the boss can not be completely customer-centered, nor can he be completely cost centered, let alone the feelings of the pricing person and subjective arrogance.
If the customer is the center, the customer certainly thinks that the cheaper the better; if the cost is the center, the store will become the intermediary, which is naturally out of the essence of the service industry; if the price maker is the center, the price is not only illogical, but also full of problems.
The boss tends to sell more expensive, the better; the customer tends to sell cheaper, the better; the cost tends to be more rational, the better. These three parties basically can not find the answer. The boss also knows that the more rational the better, it’s basically impossible. He can’t be a big wrongdoer, and he can’t be constrained by the cost. The cheaper the better, he needs more skills and is easy to play himself to death.
Most bosses think that the more expensive the better is the way out. For example, some brands want to be Hermes in pancake industry, and some want to be LV in roast duck industry. Of course, there are many successful cases.
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