A business conundrum to get you thinking

Brian, a member of our team, posed the following conundrum and we thought it would be interesting for you to have a stab too.

A rosewood coffee table set is on sale at the following places.  Estimate the price it would be sold in each place.

1                     Harrods

2                     Marks and Spencer

3                     Car boot sale

Take a moment to think about your answer before you read further…

Well, the answer depends on the price expectation of the market you shop in.

As a business you set out your “stall” in a particular place to attract a certain type of customer.

So, as a business owner, where do you want to set up your stall?’

Do you want to be a car boot business where clients’ expectations of your products or services is going to be very low in terms of quality?

OR

Do you aim to be a “Marks and Spencer” standard of business where the surroundings will be pleasant and there’s an expectation that clients will receive a good service at an affordable price?

OR

Are you a high-end “Harrods” luxury business, possibly with excellent offices in a prime London location and throughout the world, offering exceptional services or products to a clientele who are not fee conscious?

Apparently, Harrods held a Christmas sale in the mid 1970’s, selling a specific brand of ladies’ perfume at a well-publicised 50% discount. Virtually none were sold.

When they conducted a survey amongst the male shoppers they were told their wives would be insulted by receiving such a “cheap” gift. The following year the perfume was re-packaged at twice the original price – and sold out in days! Harrods’ price expectation had prevailed.

If you need advice to reposition your business to attract your target clients, chat with a member of our strategic team on 020 8530 0720.  Or email paula.w@nordens.co.uk.