Wed April 23, 2014
Price Has No Floor or Ceiling
The price for a product has no floor or ceiling. Use pricing to enhance the value of the product, but don't make it so unaffordable that no one can afford it, unless it really is top-of-the-market.
In pricing there’s neither a floor nor a ceiling. They sell wine in every country in the world for two-dollars a bottle and for hundreds of dollars a bottle. So there’s no reason you can’t sell a bottle of Tennessee Whiskey for a $150 per bottle, especially if it is a premium Jack Daniels Whiskey and the label says Sinatra Select.
Just in time for next year’s 100th anniversary of Frank Sinatra’s birth, Sinatra Select Jack Daniels is on the market.
Initially in airport gift shops around the world, soon to be in general distribution. If you’ve traveled internationally, you know that Jack Daniels already is the only American spirits brand that is in virtually every decent bar in the world.
But you may not be old enough to remember that Sinatra regularly appeared on-stage with a glass of Jack Daniels in hand. He called it the nectar of the gods. As a matter of fact, I only saw him in person once. He was so full of Jack Daniels he couldn’t remember the song lyrics. Nevertheless, it’s a great coup.
Price is not a factor when it comes to business gifts. Especially coming in a commemorative box with a booklet about Sinatra’s history with Jack Daniels.
It’s a brilliant demonstration that there’s always room at the top of every market.
To reach Mr. Malmo, hear and read more of his commentaries, or to ask him your own marketing question, go to http://askmalmo.com.