Consumers: We won't get fooled again

Think back to 2007, when Apple announced that it was dropping the price of the i-Phone by $200. One might have thought the news would earn applause the world over… but it didn’t.

Instead, some folks who had already purchased the device started “seething” (according to an article from Wired) that they had over-paid for the product. For some, the pride that came with being an “early adopter” of the device was quickly replaced by the sense that they had been exploited. After all, the price cut came less than 70 days after the product lanch.

In what many called "a shrewd lesson in damage control," Apple offered rebates to early i-Phone customers. (See this subsequent story from Wired.)

Still, it should come as no surprise that some watchdog groups are scrutinizing the latest product roll-out from Apple: the i-Pad. According to this article from Digital Trends, one market research company has taken-apart the i-Pad and found components and estimated manufacturing costs that add-up to around $230… a bit shy of the $499 retail price of the device.

Implication: I’m not here to judge. After all, I have no idea what it cost Apple, in terms of research and development, marketing, etc., to launch the new i-Pad. The opening price of about $499 could be totally justified, as far as I'm concerned. (And anyway, I'm all for products and companies that know how to earn a profit.)

That said, I'll use this opportunity to point-out how long it has been since the angst was caused by that i-Phone price adjustment. And now—nearly two and a half years later—some people remain super-sensitive about whether the price they’re asked to pay for an item manufactured by that company is acceptable… or excessive.

How about your company, product or service? Is the right price of your goods “whatever the market will bear?” Or do today’s research-savvy consumers demand a price that is more closely aligned with the value received? Are any outside influences just waiting to expose any discrepancy between your wholesale cost and the retail price? And finally, if (when) the consumer asks, will you be able to tell her why the price of your goods and services is fair and justified?

Sometimes, that’s all people need… even in a world where consumers are more cautious with their money.

Mike Anderson