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1 minute read
Tonight, I am going to do something I have not done for a long time. I am going to a rock concert.
Guess which band? A-Ha Experience, a cover band of the famous Norwegian A-Ha group. Well, you must know how old I am now!
The concert is in Brazil, and I paid R$100 for the ticket. Students pay R$50, the equivalent of US$9.
How can a concert like this be so cheap?
What would the ticket price be if the original A-Ha came to play in Brazil?
It made me think about the value perception and willingness to pay that we have for an original product vs. its copies.
My brother and I went to buy shirts for his kids from the national team of a European country.
The official shirt costs 100 euros, and an unofficial one only 20 euros.
My brother told me that he would buy the unofficial one because when he buys the original one, his children do not wear it and keep it in the closet as if it were a collector's item!
What about paintings that have a pre-defined number of copies?
Would these copies cost the same if they were replicated infinitely?
Nevertheless, a replica has the same decorative effect in the buyer's home.
It decorates exactly in the same way, whether 100 or 10,000 copies are made.
The buyer’s evaluation is: How will my visitors react to the drawing if there are only 10 copies or 10,000?
This leads me to the conclusion that value perception plays a role proportional to the perception of exclusivity; i.e., the more exclusive/true and inaccessible to others, the greater the willingness to pay for the product/show.
The interesting thing is finding out how this value perception varies among distinct product categories or from generation to generation.
Certainly, my children would not pay 5-10x more to see a real A-Ha concert, but if faced with the possibility of seeing a Green Day or Coldplay cover vs. the original band, I am sure they would pay 10x more in a heartbeat.
PriceBeam can help your company find out which market segment is willing to pay the most for your original product and how many times more it can be priced compared to its copies, whether they are legal or not.
