And meanwhile, on the Beeb…

Gucci HandbagLying in bed last night having a listen to the World Service on the BBC (as you do when you’re an exciting accountant), I happened across a very interesting program on pricing.

Being a rampant technophobe, after about 5 minutes, a link to the broadcast was sourced and it is available here.

I recommend you have a listen to it as there are some worthwhile observations through the broadcast – particularly when it comes to Gucci pricing their new handbag. It may surprise some readers to find out that the cost of manufacture had little (nothing) to do with eventual sales price which was set by the customers! The reporter on the job seems to take some umbrage at this, however the earnest Gucci rep explains it quite simply.


  1. Robert Gonzalez says:

    ” Price is a perception “. It was June 8, 2014, one day before my girlfriend’s birthday. I was out looking for a nice happy birthday present for my Andrea. I had gone to many stores to find the perfect present that could represented my, way above average, love for her. After 3.5 hours of looking, I began to feel like I did on Christmas Eve minutes before store closing with no gift in my hands. What was I going to get her? I felt faint and needed fortification. No it was not alcohol. It was the scent of a woman that I had passed. Perfume ! Why did I not think of it sooner?
    At the perfume display, I realized that I had no clue as to what to buy. I was totally perplexed. Then I had a rare good idea. If I was cheap and bought an inexpensive perfume, I would be history. My Andrea is smart. She knows her perfumes. I used her knowledge to help me find the perfect gift. I knew Andrea frequented this store. Human nature being what it is, her curiosity would win and she would have a look at the price that I paid. She would know that I thought she was worth the best. Manufacturers use this concept in the pricing of a perceived luxury item. An above average product that is costly can make a consumer happy.
    Sometimes the customer’s knowledge of products can benefit the seller.


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