Mid 50s, first went online on a 70s BBS, JANET user in the 80s.

  • 1 Post
  • 11 Comments
Joined 11 months ago
cake
Cake day: August 2nd, 2023

help-circle






  • No, I was responding to your old fashioned views about pricing. Do you see the difference between fair pricing that you mention and fair value ?

    The whole point with Fair Value is that the consumer has control. It’s not about fair pricing. It’s about what you get for that price being fair value.

    Nowadays a company needs to define its target market and ensure that target market gets fair value. A product can have any price as long as its target market thinks it’s fair value.

    We’ve seen some companies innovate and open up new markets that haven’t been served before. For example social tariffs that attract consumers who wouldn’t normally subscribe.

    It’s not just me saying this. Many commentators and analysts have pointed out that some companies (not just Apple) are taking a rather basic approach and actually removing value. The whole idea with Apple one was to add value but now that seems to be changing. They are retreating to what they know, put up prices without using their business acumen to increase value.



  • That’s an old fashioned view that business moved on from in the last ten years. It’s all about Environmental,Social and Corporate Governance (ESG investors are in control now at the big investors) with governments and regulators around the world setting rules. There’s a reason Apple is trumpeting its green credentials.

    So if a company wants to attract money its needs a strong position. One aspect is the concept of fair value. It gets away from older concepts such as cheap and premium. A product should offer fair value. That means that what it offers is commensurate with the cost to the consumer. The consumer chooses whether the product or service offers fair value. Those companies that offer fair value will attract more investors and more customers.

    That’s why I say they are lacking in modern business smarts.


  • I know what you’re saying but the world has moved on. Companies and regulators are talking about fair value as governments adopt ESG laws.

    Companies that take an old fashioned “as much as we can get away with” approach are finding their customers drifting away. Nowadays if companies want to put up prices and be successful then they have to make the product (whatever it is) seem more valuable.