I had the opportunity to have breakfast at Norma's at Le Parker Meridien during a recent stay. It really was quite tasty.
The prices, well... It's Le Parker Meridien. Will put it this way - A standard omelette will run you about the price of a chicken dinner entree at a 4-star restaurant.
I had the blueberry pancakes (pictured above) - they were priced comparably, and they were amazing! And there was 'unlimited' orange juice - albeit freshly squeezed orange juice... for $9 bucks a pop. But the orange juice- was amazing!
Were those pancakes and juice REALLY worth $40?
Does part of our brain tell us - if I'm going to pay almost $10 for orange juice, my tongue is going to detect every slight nuance of velvety citric-sweet goodness? Most people don't yearn to say - 'I wasted $9 on orange juice and it sucked'.
Price can actually have a direct impact on our enjoyment of a product - despite how it may look or taste. Wine is a product whose price can range from one to six digits for a single bottle. There are certainly nuances across each varietal and vintage, but those aside, there happens to be a study that has directly linked a consumer's enjoyment of a bottle of wine to his or her perception of how expensive the wine is.
I've got to give credit to Norma's - clearly there is power in the assertion of pricing. You could probably go three doors down to a hole in the wall takeout cafe on 56th St. and get an order of blueberry pancakes and a carton of orange juice for the same price as that 'bottomless' glass.
But... it's Norma's. They have a $1,000 caviar-covered omelette called the Zillion Dollar Frittata . If you are visiting NYC from, say, Dubai, have a little bit of money and a lot more ego, maybe you're going to say - heck yeah, I'm going to spend $1,000 on an omelette at the storied New York institution Norma's just to tell people I can!!!
Marketers in the luxury business, whether hospitality or durable goods, are masterful in creating intangible value that makes every penny spent on $10 OJ or a $10,000 bag justifiable. It could be helping customers relish in the experience of sipping orange juice in a legendary New York institution, or giving them the comfort of knowing they're purchasing a bag made of the butter-soft leather of baby sheep who have been smothered in La Mer moisturizer from birth (that's hyperbole... I hope).
Simply having the gumption to throw out an astronomical price paired with an intriguing product story, is part of the secret sauce that makes some willing to pay a premium for one brand versus another.
Pricing is an art and a science... and, admittedly, a struggle for some. As I've spoken to more people who are in the consulting business, their biggest challenge is pricing - and making sure they're communicating and being paid their worth.
What do you think? Do you instinctively feel that something is 'better' just because it's more expensive?
Alliah
The prices, well... It's Le Parker Meridien. Will put it this way - A standard omelette will run you about the price of a chicken dinner entree at a 4-star restaurant.
I had the blueberry pancakes (pictured above) - they were priced comparably, and they were amazing! And there was 'unlimited' orange juice - albeit freshly squeezed orange juice... for $9 bucks a pop. But the orange juice- was amazing!
Were those pancakes and juice REALLY worth $40?
Does part of our brain tell us - if I'm going to pay almost $10 for orange juice, my tongue is going to detect every slight nuance of velvety citric-sweet goodness? Most people don't yearn to say - 'I wasted $9 on orange juice and it sucked'.
Price can actually have a direct impact on our enjoyment of a product - despite how it may look or taste. Wine is a product whose price can range from one to six digits for a single bottle. There are certainly nuances across each varietal and vintage, but those aside, there happens to be a study that has directly linked a consumer's enjoyment of a bottle of wine to his or her perception of how expensive the wine is.
I've got to give credit to Norma's - clearly there is power in the assertion of pricing. You could probably go three doors down to a hole in the wall takeout cafe on 56th St. and get an order of blueberry pancakes and a carton of orange juice for the same price as that 'bottomless' glass.
But... it's Norma's. They have a $1,000 caviar-covered omelette called the Zillion Dollar Frittata . If you are visiting NYC from, say, Dubai, have a little bit of money and a lot more ego, maybe you're going to say - heck yeah, I'm going to spend $1,000 on an omelette at the storied New York institution Norma's just to tell people I can!!!
Marketers in the luxury business, whether hospitality or durable goods, are masterful in creating intangible value that makes every penny spent on $10 OJ or a $10,000 bag justifiable. It could be helping customers relish in the experience of sipping orange juice in a legendary New York institution, or giving them the comfort of knowing they're purchasing a bag made of the butter-soft leather of baby sheep who have been smothered in La Mer moisturizer from birth (that's hyperbole... I hope).
Simply having the gumption to throw out an astronomical price paired with an intriguing product story, is part of the secret sauce that makes some willing to pay a premium for one brand versus another.
Pricing is an art and a science... and, admittedly, a struggle for some. As I've spoken to more people who are in the consulting business, their biggest challenge is pricing - and making sure they're communicating and being paid their worth.
What do you think? Do you instinctively feel that something is 'better' just because it's more expensive?
Alliah
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