How much is a Starbucks™ cup of coffee (up to $6) worth? How about an iPod Nano® ($149) ? What about a new pair of Nike® Lebron James 8PS ($150)
The answer depends 100% on who is providing it.
Obviously, it doesn’t cost Starbucks® $6 to make a cup of coffee (regardless of the amount of caramel), Apple $149 to make an mp3 player the size of a stamp, or Nike $150 to make a pair of shoes in a third world company sweat shop.
So, why do we pay these prices when there are comparable alternatives at a much lower cost?
Anyone in an entry level marketing class can tell you that we pay these prices because of the way the products make us feel.
What emotion does the marketplace associate with your product or service?
CJ McClanahan is the Founder of reachmore, which teaches small business owners how to build a business that runs without them. For more resources on business leadership, please visit reachmore’s seminars