You Have to Take Care About Your Reputation

 

In this very interesting book, "The Experience Economy” by B. Joseph Pine and James H. Gilmore, we have find one great premise: "You are what you charge", if you are competing with competition only by cost, you will have a big problem on the global market. They say, if the price is the only differentiating factor in the market race, then you worth much. It is like selling commodities.

 

 

An example of such goods is electricity, wheat, gold, oil, edible oil, etc. For these goods the difference is not in who, where and how someone sell it- the only differentiating factor is the price. This means that if you are seen as the comforts dealer, the goods you sell (in the perception of the buyer) has the lowest possible value. Hence, your options to personal commitment elections for competitive advantage in the market is reduced to a minimum.

 

 

To better understand this concept, let's look at an example, say a cup of coffee. At first glance, coffee could be viewed as "mercantile goods," or as a commodity whose value is determined on the Mercantile Exchange (in respect of supply and demand). In the form of commodity (from the word "commodity"), as a mercantile commodity, how much cost a kilo of coffee on the plantation in Brazil?

Let's say it is one US Dollar - $ 1.00. If the coffee looked at this way, such a cup of coffee would cost us 1 cent, or $ to 0.01. But do not forget, this is the price in a large warehouse coffee plantations. After the importer has imported, roasted, milled, packaged and distributed to stores, kilo of coffee can cost us ten dollars. From this moment, the price of coffee is no longer for "mercantile goods", but the price for goods that are linked to the brand distributor, the recognition in the market and the way of sales.