Fillico Jewelry Water from Japan – $616 per litre
NEVAS from Germany – $190 per litre
Svalbaroi from Svalbard, Norway – $166 per litre
Bling h2o from the US – $104 per litre
Uisge Source from Scotland, UK – $60 per litre
Lofoten from Norway – $56 per litre
ROI from Slovenia – $48 per litre
MINUS 181 from Germany – $48 per litre
BLVD from Tasmania, Australia – $40 per litre
Berg from Canada – $34 per litre
This is a list of the 10 most expensive bottled waters in 2020 compiled at www.svalbardi.com. The prices are in US dollars and compare to Mount Franklin water currently on special at Coles for $9.20 for 20 500mL bottles equating to US$0.67 per litre. So even Berg at number 10 on the list is a massive 50 times more expensive than Mount Franklin. Water is even cheaper direct from the tap!
Why are some customers prepared to pay much more for the same product? Could anyone even taste the difference?
What can we learn from this that is relevant to our own business? Here’s some ideas:
– The bottom of the market is not an accurate reflection of what the top of the market is willing to pay.
– Identical product can be differentiated by other means.
– Packaging is important.
– Just because one customer complains about price doesn’t mean we should reduce prices (for all customers).
– Higher price creates the perception of value.
– The story associated with your product or service is important.
– Buying decisions are often not rational.
– Customers want to look good to their friends.
Always remember that:
– The hardest way to make a profit in business is to be the cheapest.
– The biggest lever you can pull in any business (to increase profit) is the price lever because 100% of the gains flow to the bottom line.
Over the years hundreds of business owners have told me that their customers are different – they only care about price. They have all been wrong! What often happens is that customers ask about price because this is the only thing they understand. Your job is to educate them so that they can ask the right questions and understand the real value of your product or service.