Sunday, August 12, 2012

Impulsive, Irrational Pricing!

Do you see what I see??

No?? Got an eye problem?? 
Go back to the image again. Stare at it, PLEASE!!!
Do you see it now??
Well, this is what I see:













What I see is a brilliant, amazing implementation of irrational pricing

Look at the top of the menu where a 7" Margherita costs Rs. 75.

If you go for the 10" Margherita, it costs Rs. 170!!

Huh??

Technically, a 10 inch pizza in size is 43 % more than the 7 inch pizza.

But cost-wise, Rs. 170 is 126% more than Rs. 75 !!!!

In fact, if I buy 2 Domino's pizzas of 7 inches each, I get 14 inches of pizza and pay Rs. 150; but I need to pay Rs. 170 to get only 10 inches!!

Look further - If I buy 3 pizzas of 7 inches each, I get 21 inches to enjoy and pay Rs. 225; whereas 13 inches as a single pizza costs me Rs. 315!!!

WOW!!

This proves that:

- Consumers are completely irrational when it comes to making pricing decisions when they see choices.

- They choose the size they want, not the price.

- Then, they just 'accept' the price presented to them!

Lessons:

- Create a 'need based' pricing matrix - not a volume or input based pricing structure. Notice how the Inches (") printed, is the smallest font on the menu!

- By presenting lots of variations and choices, the human mind migrates to what it wants. It does not look at alternative options when one choice seems logical:

To elaborate - if the 2 of us are eating a pizza, we may call for a medium pizza and share it.

Instead, we should call for 2 separate pizzas and also give away a few extra inches to some friends!

We would've saved money and made someone happy too!

- Don't get too scientific about pricing. Get fuzzy, irrational and emotional. It works!!!


Thursday, March 15, 2012

To mock or not to mock



Last to last week I went to meet my cousin studying in local engineering college, I had great time to be back into kind of college-hostel environment, I stayed there for weekend. Talked to many of his classmates, listen to what their thoughts and expectation and dreams about job / after job, life.  

These are my observations/ views :

1. Other than for 1 or 2 exceptions, all of them did BCA as their grad and joined for MCA - "just to do a PG"!  When ask why - they just don't know why, no one ever asked them!

2. Someone felt that going for MCA will help then learn C++ better, because they learn on C for BCA. Lucky we don't have a C+++, otherwise these colleges will start DCA also

3. Most of the girls think that they will have a better positioning in marriage market.

4. Most of the boys think that they will have a better positioning in marriage market.

5. Most of them seems to have read in a leading local daily that doing MCA will fetch them a better job.

6. All of them don't have any idea of the job they are going to do when they join a company - even after spending 4.5 years of their peak youth.

7. They don't know anything about the industry they are entering into - companies, jobs, market, future, education options, academics etc...

8. They just don't consider companies other than Wipro, TCS, Infosys etc as their prospective employers - the reason here is also primarily the marriage market, not their career growth or not even money!.

9. Majority of them don't know how to communicate. I'm not commenting on their English - they don't know how to communicate in any of the languages.

10. All of them have C/C++ in their CVs as their only language and just don't know who is K&R and don't know how to write a program, compile and make it unless then have Turbo C in front.  They don't know whats #include is all about. Most of them have never seen an executable made by their C/C++ programs.

11. They don't have any programming skills (and all relevant skills), basic knowledge about data structure, algorithms etc.

12. Most of their decision are influenced by ignorant teachers, parents, friends and media - event if they think otherwise. They don't have an opinion of their own - even after becoming adults!

My Advice was mostly around (though I didn't preach and was more like a listener there):

1. You wasted the most precious 4.5 years of your life

2. You have 3 more semesters to correct what all you are missing

3. Its your life, you are in charge - you make decisions - not your parents, uncle/aunts, teachers, friends, relatives etc...

4. Work on your skills. Skills are different from knowledge - you need to develop it - whereas you can acquire knowledge in various ways.

5. Read/Listen/Speak/Watch Movies etc., so that you gain exposure and attain the right mind-set/attitude

6. Support your peers - collectively you can work on your shortcoming in the coming 3 semesters.

I really felt pity seeing most of them (happens during taking interviews as well) - victims of 'excel to get a degree - not knowledge' mentality, most of them are going to become slaves with some IT companies. Some of them will endup in teaching - circle of life!

But found few originals among them with a sense of direction, entrepreneurship and purpose for life!

Monday, August 1, 2011

Want "Cake" for the budget of "Egg" ?

Communication works in sync with our "relationship" and "Interest" of the client into the project apart from various factors.

There are client who spends money, a big organization, has budget and is willing to spend money, every web designer's dream. Then, there is another breed of client, a primer of sorts. Its worth it and interesting to go an extra mile and standard formal communication of superlative degree even when I am not sure if he has budget, but will do best efforts of sales and professionalism.

How ever, nothing like this works with the client who has very tight budget, i repeat ..NOTHING. and I refer to them as the "Shoe String Budget" client. This breed of client wants a super high speed, with all fixings, changes they ask but is not willing to pay the price. The shit gets whipped with cream when they also want wire frame in HTML and jquery at very initial stage with in this "egg budget"

In other words , they want to low -ball you. They want CAKE for their shoe string budget, but only have a budget for EGG. You do any thing like standard communication, 24 hours instant reply, chat/phone feedback, FSD/Site Map, Standard proposal or anything...nothing guarantees.

Shoe string budget clients ( aka cheapskates), will constantly try to talk you down from your price. They make feel like walking into shopping mall and tell what they are willing to pay, expecting us to accept their offer.

Yes, the project still needs to be done in a professional way since it ultimately has my name/brand on it but then, universally, there is a tendency of disinterest, so perfectly legitimate communications gets tedious when :

....they will either :

    * Constantly try to talk you down from your rate
    * Offer you less than you charge
    * Offer you cute anecdotes or sob stories in hopes of you lowering your rates

PS: Keep yourself away from these clients.

Tuesday, February 22, 2011

Should every business have a blog?

How about rephrasing the question: Should every business have a blog?

No, not every business should blog. Should every business have a strategy behind how they produce, curate, aggregate and distribute content?

Yes.

Because pretty much every business already generates some form of content. Most have brochures or reports of some kind. But increasingly content is becoming the doorway to being found through what's commonly known as "organic search" which is a leading way people find information on the web. The content your business touches can also influence your online reputation. Content can be a blog post—and it can also be a response on a third party website.

Move the conversation beyond blogging and into all forms of content and how it affects metrics such as page rank, views, shares, and money made/saved and the answer is that every business should re-evaluate the thinking behind the content associated with them.

Saturday, July 10, 2010

Steal the Deal


Its old enough and common now to relate to clients, clients must be satisfied with conversation to be able to do business with us and to build a relationship with mutual trust.

Still, there is always a considerable challenge in the game (i.e. deal) with some the most dangerous moments in deals, especially when everything is moving according to client’s wishes. It scares me, as on client side interaction, I can’t refuse, I can’t contradict, have to disagree without being disagreeable. The deal often contains some razzle-dazzle and hocus-pocus. It’s either losing a great deal or to make a great deal.

Some deals take months of negotiations (with silence), some I have sealed in one phone call (that’s the best feeling). I can’t directly refuse and can’t contradict otherwise it breaks down ….completely …. most of the time.

Its interesting :)

Monday, May 17, 2010

I know Everything


Still Don’t Know Enough?


I am still amazed at how many people and businesses I talk to whom have no idea what is happening around them.

Business dynamics are changing. Markets are shifting. Media, both online and off, feeds us the “story” of the day aimed at grabbing our attention. Consumers and businesses alike are inundated with information but few know how to vet the information and find relevant knowledge.

People Who Know Everything

A lot of people think they know enough but no one knows everything. When you talk to business leaders about “social technology” many have a jaundiced view of exactly what it is and what it can do for them and their business. Why? Because many people who think they know everything don’t want anyone to know what they don’t know. Subsequently when engaged in dialog about something they don’t know the first reaction is to diminish the value and meaning of what they don’t know.


The Meaning of What You Don’t Know

What does the growth in use of social media mean to your business? If you don’t know that means you are vulnerable to an under-current of changes on the horizon that will get your customers attention and possible create an attraction that pulls their affinity to someone else besides you.

You Cannot See What You Do Not Understand