Monday, July 6, 2009

Most expensive liquid on earth

Any idea of which is the most expensive liquid sold in supermarket ?

A 100 ml bottle of perfume, let's say Chanel n°5 (for the eau de parfum, not the least expensive indeed !) is currently sold 90€, for a 900 € per liter.

One bottle of Romanée Conti 2003 is sold about 2000 € see here, that makes about 2600€ per liter.

No, these fluids are quite cheap if you compare them with ... ink print ! Have a look at your standard ink cartridge and look at the volume : you get around 3000€ per liter !

Of course, the price is not justified by the rarity of the ink but by the smart business model in which the hardware is sponsored by the consumible. That's also why a cup of coffee costs you at home 0,05cts, a Nespresso 0,3 cts, 2€ in a restaurant and 4€ at Starbucks...

Smart pricing : fix the price for the value you offer taking account the willingness to pay of your customers and not for the cost you deliver...

1 comment:

Nicolas Schriver said...

New pricing systems sometimes are difficult for customers to understand. For instance, a former professor told me how customers reacted when train companies decided to switch from a price based on distance to a price based on booking (what we call the Yield Management). This is interesting to see though how printer companies set up for customers a high barrier of entry for competitors, in order to generate a lucrative business model.