This is a question I often find myself asking when talking about pricing for software.
Skoda usually wins awards for every model it releases, it offers incredible specs and while taste is subjective, it isn't the most unattractive car out there. One thing isn't debatable, the Skoda solves a problem just as well as any other car in its respective classes.
So when $100k could buy you a Range Rover, which would you choose for your money? The answer is obvious I know.
It really comes down to perceived value. While I think most people get that, the thing I don't think a lot of people consider is who decides the perceived value of something.
You can spend a bunch on marketing, improving your specs and products, win awards but ultimately the market decides the perceived value.
This is something you have to take into account with pricing. A frustration I find when reading a lot about pricing in software is the default recommendation is 'charge more.' 'Add a zero to the end of your price' a lot of people suggest. That's an easy recommendation and probably falls on welcoming ears a lot but you have to be realistic.
When looking at pricing, you really have to consider the market. Who your competition are ( I know there's a lot of rhetoric about not caring about who your competitors are- but guaranteed your prospects and customers do.)
Taking those things into account, sometimes you may have to be a bit cheaper and that's not a bad thing.
Anyone I know who has owned a Skoda has only ever said good things about them to me, and that's 100% because they are getting an incredible amount of perceived value from it - even at a lower price point.
I am from Czech Republic where Skoda is originally from (now owned by VW) and where a lot of it is being manufactured. I have owned them, their main models (Octavia, Superb, Kodiak) are all absolutely fabulous cars. The brand doesn't necessarily have a strong recognition like for instance German car brands, but they are reliable cars. My view is that the difference between a VW and Skoda today is literally just the logo on your hood.
This comment was deleted 3 years ago.