Everybody knows the movie, “Pulp Fiction” and the restaurant scene where Vincent (John Travolta) is out with Mia Wallace (Uma Thurman) where Mia orders a $5 milkshake. $5? How could a milkshake cost $5? It’s just milk and ice cream!
Well, when their order comes to the table and Vincent has a taste of that milkshake, he’s amazed…
A milkshake is one of the simplest things you can make, so why the increase in price?
It’s all about value and differentiation. If a restaurant keeps a $5 milkshake on the menu (or even $7 or $8 like I’ve seen these days…remember, this movie was made 20 years ago), patrons like Vincent might be a little skeptical. But, given his reaction, the restaurant clearly has a recipe of other ingredients that has truly added value to the experience of drinking that milkshake.
When someone tries a product and discovers that it is unique and is different than the competition, the consumer can understand the higher-than-expected price tag because they see value.
So, what did we learn here? It’s that people are comfortable with paying premium prices, as long as the products they buy are truly high quality. That’s what we have always been about at Steiner Sports. Our business is predicated on value and enhancing the quality of products and experiences that we offer to customers.
So, what's your milkshake? What brings the "Wow!" from your customers? If you're a customer, what brings the "Wow!" out of you?
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