High Quality vs Low Cost Bargain Pricing Contradictions

Today I will introduce to you a brain game. My final aim is to explain what does it mean a pricing contradiction, and why do we have to dig deeper beyond economics and data number analysis, when setting prices. There is a gray zone when we land into the dichotomy of high quality vs low-cost bargain pricing. It is a gray zone where we do not get an absolute answer because good value-based pricing is dynamic. I have repeatedly told you that the right price should be around or next to the VEL (Value Equivalent Line). This is the zone in which the price is equivalent or approximately fulfills the fair, and whole value received by the customer.

Price should align with value. Following this classic correct theory of pricing is the only way in which our company will endure its possibilities for the future, without cannibalizing other industries and other artisan economic sectors. This is the only area in which we avoid pricing contradictions. Anything that we price outside the zone of the VEL, regardless of belongs to the economy, the medium value, or the premium segment.

Ralf Leszinski and Michael Marn, both wrote the article “Setting Value, not price” in 1997, and these 2 consultants were exactly “on point”. And this pricing contradiction along with the VEL, is what I will explain to you with an example. Moreover, you will see it illustrated in the pricing of the COVID19 pricing vaccines. This strategic reflection analysis will provide a different overview of the subject because I will see it from the point of view of prices and their value differentials.

Before providing this analysis about the vaccines, I need you to read and read a lot over the weekend. I have gathered the following websites that I believe can help you to be on the same page for the context of my illustrative example.  Next week will be Easter week for Christianity, and it coincides with Passover for the Jewish, celebrations that commemorate the liberation of the Israelites from Egyptian slavery.  For those who are not religious believers, still, a week of vacations happens for many countries on earth.

So please, read all these articles. I have chosen a diverse type of readings, according to your level of literacy or educational background, some will be too hard for you to understand, simply if, after 400 words of reading, you don’t understand anything, continue with the next article on the list. I have tried to be plentiful in the reading material because I hold an ample generous audience. You will have enough time to read and to get informed.  Otherwise, you won’t understand my pricing analysis about COVID19 vaccines which will be posted next week.

Here we go with your assignment:

https://www.npr.org/sections/goatsandsoda/2020/03/30/822491838/coronavirus-world-map-tracking-the-spread-of-the-outbreak

https://www.mdpi.com/2076-393X/8/2/236/htm

https://sites.bu.edu/covid-corps/projects/science-communication/types-of-vaccines-infographics/

https://cepr.org/sites/default/files/CovidEconomics44.pdf

https://news.cgtn.com/news/2020-04-07/Graphics-How-soon-can-we-get-a-COVID-19-vaccine–PuPkfQbGxi/index.html

https://news.mit.edu/2020/rna-vaccines-explained-covid-19-1211

https://covidreference.com/variants

https://www.lek.com/insights/covid-19-vaccine-research-and-development-landscape-july-2020

https://www.bcg.com/publications/2020/covid-vaccines-timelines-implications

https://www.mckinsey.com/industries/public-and-social-sector/our-insights/the-covid-19-vaccines-are-here-what-comes-next

https://www.nature.com/articles/d41586-021-00140-w

https://markets.businessinsider.com/news/stocks/tracking-covid-19-vaccines-around-the-world-1029907600

https://www.bbc.com/news/world-africa-55975052

https://www.cas.org/blog/covid19-vaccine-questions

https://www.nejm.org/doi/full/10.1056/NEJMp2005630

https://wellcome.org/news/what-different-types-covid-19-vaccine-are-there

https://www.mckinsey.com/industries/pharmaceuticals-and-medical-products/our-insights/on-pins-and-needles-will-covid-19-vaccines-save-the-world

https://www.europeanpharmaceuticalreview.com/article/122275/comparison-of-new-vaccine-approaches-covid-19/

https://www.nature.com/articles/s41563-020-0746-0

https://www.who.int/news-room/feature-stories/detail/the-race-for-a-covid-19-vaccine-explained

https://www.gavi.org/vaccineswork/covid-19-vaccine-race

https://www.visualcapitalist.com/every-vaccine-treatment-covid-19-so-far/

http://www.oecd.org/coronavirus/policy-responses/treatments-and-a-vaccine-for-covid-19-the-need-for-coordinating-policies-on-r-d-manufacturing-and-access-6e7669a9/

https://www.immunology.org/coronavirus/connect-coronavirus-public-engagement-resources/types-vaccines-for-covid-19

https://www.ppd.com/blog/how-covid-19-is-changing-the-approach-for-the-vaccine-development-process/

https://www.nytimes.com/interactive/2020/science/coronavirus-vaccine-tracker.html

https://www.dw.com/en/coronavirus-can-we-trust-recent-covid-vaccine-successes/a-55623111

https://healthblog.uofmhealth.org/wellness-prevention/what-happens-after-you-get-covid-19-vaccine

https://www.healthline.com/health/is-the-coronavirus-vaccine-safe#long-term-effects

https://www.yalemedicine.org/news/covid-19-vaccine-comparison

See you next week for our final sprint of the saga “High Quality vs Low-Cost Bargain: The Current Dichotomy!”. Be sure that we will finish it before April 1st, the beginning of Easter time.

Any high quality mind will always elevate people and its societies, not the other way around.

Eleonora Escalante

Disclaimer: Illustrations in Watercolor are painted by Eleonora Escalante. Other types of illustrations or videos (which are not mine) are used for educational purposes ONLY. Nevertheless, the majority of the pictures, images, or videos shown on this blog are not mine. I do not own any of the lovely photos or images posted unless otherwise stated.

Published by eleonoraescalantestrategy

Corporate Strategy Artist, San Salvador, El Salvador View all posts by eleonoraescalantestrategy