We know that competing on price alone would be considered by some as ’so yesterday’ as the strategy for success for all companies. It definitely works and works exceptionally well for some (think successful retailers like Walmart, Dollar Stores). However, for those of us working in tourism and hospitality we know that when people are travelling they ‘morph into a different consumerism’ a good percentage of the time. Not always (for example the VFR market) but the purse strings to tend to open up a little bit or a big bit when we are on the road. After all, a vacation is a reward for all that hard work we do on a day to day business. That time to step away and treat yourself, your family, your friends?
Choosing to pay more is intimately linked to the value proposition. We often speak to the ‘experience’ on this site, but choosing to pay more can also be linked to the values of the company and their ideals. Yes indeed, this too impacts the decision to buy.
A company in the USA called “Burgerville” appears to be doing just that – differentiating on the values of their company, and their product then charges a higher price point — and it is working. They started with the 30 – 60 year old market and are now moving their demographic to a younger audience. How fascinating and exciting, for we typically think ‘younger, less ability, less willing to pay’. Well that may be a stereotype that may need to go the way of the dinosaur!
Check out this article that tells their story then let us know what you think!
