The other day we wrote about charging less for products and services. Several people commented and made good points. There is nothing wrong with charging more as long as you provide value. After reading some of the comments I saw an article on Fast Company again about Fair Trade and how they have actually grown during the recession.What I find so interesting is that those who are thriving are doing so because they are adding value to what they have and are not cutting their prices. In fact, prices went up for many fair trade items.
Prices for fair-trade products may be higher, but one Harvard study has showed that consumers expect them to be: Sales actually increased when the price went up. “Not only is this consumer segment–which is growing, trend-setting–willing to pay a little more for products that speak to those values, but they expect to pay more,” Transfair USA CEO Paul Rice said in a session at the forum. It’s as if the higher price signals that the certification isn’t just a marketing gimmick but guarantees the veracity of the claim.
Rice thinks that companies investing now are being particularly forward-looking. “Companies who are announcing big increases in FT product lines are really trying to position themselves for when we come out of the recession,” he says. “They’re positioning themselves now, at this unlikely moment, to establish credibility.” He believes there’s good reason to do so, citing studies that show up to 30% of U.S. adult consumers–some 60 million people–regularly shop for products “that are consistent with their values.” Read the whole article at Fast Company
This survey was done in a more upper class area, but as I have been out shopping I have found there to be nearly the same amount of people shopping and spending a great deal. We may be more picky, but, we haven’t quit spending altogether. I dare say that the day is coming when smarter, fairer shopping isn’t just a yuppie lifestyle choice, but the generally preferred one. And to quote the Fast Company article again, “That actually could mean that fair trade becomes less recession-proof, not more.”
Now, most of us are not in the fair trade market, but the same applies to us. I am not saying that there is never a time to discount prices, what I am saying is that deep discounts on goods and services all the time is not the answer either.
Chime in and let us know what you think too!
