Premium Pricing

Today, I visited Hauz Khas village to meet one of my friends who needs some help with marketing and storytelling.

This was the first time I was there, I didn’t know much about some famous restaurant to sit in but thanks to google maps, I found cafe coffee day nearby.

The sun was too bright, and I have forgotten my water bottle (that I always carry), so I ordered a 500 ml water bottle with a price tag of Rs. 50. Here’s the pic:

Normally, I pay Rs. 20 for a 1-litre bottle but at that moment I happily pull out my wallet without thinking much. Not only me, one of the girl there, who was fighting for a penny with an auto driver outside, was enjoying, Rs. 270 classic cappuccino with an open heart.

That forced me to think, Why people happy to pay a premium price? Because you can easily have a better cappuccino at much cheaper price somewhere else!

People aren’t paying for the coffee. That’s for sure. They were paying for that good feeling they were getting in the moment.

The ambience...the paintings...that soft music...their cooperative staff all were adding to make people feel good.

We as humans, makes decision emotionally more and logically less. After all, that’s what makes us humans :)

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© 2020 by Harkirat Singh