Everyone’s complaining about the price of energy. In all the analysis I didn’t hear many people say price rises are a good thing. But surely it’s good for the environment if people drive less and burn less electricity at home. If we use less. Are we all so miserly that we won’t spend a little more on these basic necessities?
And how do prices get set anyway?
It’s about what the market agrees, right? Whatever competitors are doing, plus anything we can get away with?
Why then are we are prepared to pay £10 for a round bit of plastic called a DVD costing a few pence to make. £100 for a bottle of alcohol tainted with a few chemicals and a nice smell. A thousand pounds for dress with the right label. Several million pounds for a cow cut in half.
Doesn’t price have a lot to do with perception?
I think part of our challenge for the future is to change people’s perception of the products and services they buy. So that we all properly value the incredible complex machine that delivers heat and light into our houses at the flick of a switch.
Maybe the best thing would just be to turn it off for a few days. I bet that would change perception fast – and allow a really significant price adjustment.
And what would your customers think if you did that to them?? It’s an interesting thought-experiment. Not sure I’d dare try it out in real life though.