Thursday, January 22, 2015

Ice is all about selling the value

I am teaching a lot of Intro to Marketing this year. I have thought that "ice" as a product is a great way to think about customer value. It is a product you don't really need. With a tiny bit of planning, the ice companies would never sell a thing. Yet we still pay up to $5 a bag for ice, which is basically water + electricity + time.

What makes a bag of ice cause us to be willing to part with up to $5?

1 comment:

  1. Now I see why my customers sometimes complain that they were overcharged for ice.

    Protip (not that anyone who would read this would need it) - specials aren't the same everywhere!