I had an email yesterday telling me that the Apple One subscription was going up for the second time in twelve months.
It no longer represents good value for me and I can save nearly £100 a year by cancelling and subscribing to the important parts that I use most.
Apple are not alone in increasing prices (in a cost of living crisis) to the point they no longer represent fair value. What is it with companies that they lack basic business smarts?
No, I was responding to your old fashioned views about pricing. Do you see the difference between fair pricing that you mention and fair value ?
The whole point with Fair Value is that the consumer has control. It’s not about fair pricing. It’s about what you get for that price being fair value.
Nowadays a company needs to define its target market and ensure that target market gets fair value. A product can have any price as long as its target market thinks it’s fair value.
We’ve seen some companies innovate and open up new markets that haven’t been served before. For example social tariffs that attract consumers who wouldn’t normally subscribe.
It’s not just me saying this. Many commentators and analysts have pointed out that some companies (not just Apple) are taking a rather basic approach and actually removing value. The whole idea with Apple one was to add value but now that seems to be changing. They are retreating to what they know, put up prices without using their business acumen to increase value.