want to charge more? The government is stopping you!

… and they’re probably sabotaging your prospects’/clients’ outcomes in the process.

So, this morning Fiona and I are having one of our regular breakfast debates …

… this time: should the government be allowed to dictate prices.

Specific ‘product’ in question:
somewhere on this planet, some government apparently decided that it’s unethical to sell Nurofen in ‘special editions’ and charge more for it.

SWINDON, UK - MAY 3, 2015: Two Boxes of Nurofen, Nurofen is an Ibuprofen based tablet used for relieving pain, fever and inflammation
As in: you buy Nurofen “for headaches”, or Nurofen “for PMT”, or Nurofen “for …” and you’re charged up to twice of what you’d pay for ‘normal’ Nurofen.

Now, turns out, they all contain exactly the same ingredients.

And hence, according to said government (and my wife) it’s unethical to charge different prices.

From the “debate” opening, you can guess on which side of the fence I am.

Obviously, the ‘free market’ and – more importantly – ‘free marketING’ side!

And here’s why:

People’s outcomes are to a large degree dicated by their EXPECTATIONS.

So if you expect to get better results from using a product that is made SPECIFICALLY for you, then you WILL get better results.

The same goes for paying higher prices!

Higher prices are equated with ‘better’.

Meaning, you typically put more into solving your problem.

And hence get better results.

My view:

given that there are plenty of generic (and cheap) alternatives to Nurofen (and hence not a monopoly-situation), the government has no business interfering with pricing.

Yes, the ingredients of the pill may be the same, but the packaging is different, the marketing is different (and that alone may justify a higher price, namely to PAY for said advertising & marketing), and – most importantly – the outcomes for the end-user are VERY VERY different.

Take-home-message:

when you give people SPECIFICALLY what they want, they tend to get better results, and as a result are willing to pay more.

Everybody’s happy.

Apart from interfering squirrels of course…

Thoughts?

Veit

PS: my views are very different when corporations are exploiting their ‘monopoly’: as you’ll see in tomorrow’s post … Google is screwing your privacy in such a lovely way, it’s insane…

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