” Everything is relatable to Demand and Supply”Economic Behavior can be said to be an aggregation of all phycological state of human being, i.e. fear of lost/paint and seek for better life.
Business Startegy involved 2 main things. Firstly the irreplaceable value and become the only one… In all the decisions. It is much like having an economist point of view how to sell higher… The world works like an economics sentimental. Over the years, I have changed my thoughts being a historical costing accountant to a price level prophet by equipping the knowledge of economics into business decision… Big or small.
Say for instant how do you pay your employee? Are they the only one in the company? Are their skills replaceable? How unique is their skill?
Another example will be how to price your product. Many people do not understand how to price their product correctly. For instant a house, how can you improve your capital gain on your real estate? By making a cleaner and better house? Or being a fully furnished house. Many people buy house with loans and do have anxiety of “money lost” after heafty downpayment was made. Hey! Why not allowing your buyer to marked up, and also leave behind your furnitures and renovations for him? If u have them, leave it for him… So he gets a cash from loan drawdown and further, he won’t need to worry to get furnished up… Isnt that great? For that you be entitle for a premium… Because you are being unique…
Another example is from a case study I learnt from Spanx an undergarment company in US where the founder used to be a fax machine seller. Being a fax machine, a brand I couldn’t recall… She were selling it for lower price for a better quality… Better deal isn’t it? But people wouldn’t listen when she wanted to propose. It is a real cold experience… Price spiraled downward and she realised she would price slightly higher than Xerox the known quality brand… All of a sudden people start stopping to her pitch and listen to her… Hey… This is some phycology that all SMEs has to learn… We are here to provide a differentiated experience for our product and services… If u are unique, charge higher! Otherwise there is no stage for your showcase as people would not even want to know about you? Ring a bell?