Is the pricing by Branded companies justified?

@sarathkumar-FEGRPw • Oct 20, 2024

Oct 20, 2024

1.2K

There is always a question making me to think again and again that whether the pricing done by Branded companies seems justified or not.Consider companies like Apple,Htc,Audi,Mercedes benz,Rolls Royce and etc.Do you think that this act was correct as all the electronic chips and parts were cheap and the final market price more than 3 folds of production cost.Can really companies make such profit?
Now even reputed universities get Branded status and they absorb more money from students.
Can this act be justified.Throw me the reasons to support this concept.

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Anoop Mathew

@anoop-FRTf1L • Aug 21, 2013

The question as to why the price is higher compared to lower branded companies is justifiable. But the question that remains intriguing is why one premium brand is more expensive than the other.

The price of premium products comes along with the care and customer satisfaction provided and also on the materials and technology used.

In America, the people have been using computers or tech equipment like GPS in cars for almost two decades - Indians don't use it frequently even today.

In India, you get high priced automobiles with a luxury tax - and often this tax makes some models more expensive in India compared to other countries. Prices of cars are highest in Singapore.

Cars like Audi, BMW have superb designs and material used is such that it ensures protection compared to the fibre/plastics used in cheaper models. Infact while shooting the movie Transformers(2nd part), the producers tried to actually destroy two Audi R8s but when they failed, they decided to re sequence the scene such that an Autobot would actually rip apart the Audi R8 (starring in the movie as a Decepticon).

Rolls Royce, Bentley and Maybach are the most expensive luxury cars and the companies claim a lot about their sophisticated specs.

Apple is a premium brand from day one and I guess we people are responsible for keeping it that way.
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zaveri

@zaveri-5TD6Sk • Aug 21, 2013

The 3-fold pricing of branded products is justified. (because after all that is what brands are for).

but the education institutions getting branded and fleecing the students is not justified.
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Nayan Goenka

@nayan-Dhpt4N • Aug 22, 2013

Take it in a simpler way. If these cars would not have been costly, they would not have been status symbols. The quality of the products and services cannot be questioned since you pay millions for them. And the look and cost define its status and ultimately forge a brand.
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Sarathkumar Chandrasekaran

@sarathkumar-FEGRPw • Aug 22, 2013

Nayan Goenka
Take it in a simpler way. If these cars would not have been costly, they would not have been status symbols. The quality of the products and services cannot be questioned since you pay millions for them. And the look and cost define its status and ultimately forge a brand.
So should the rich peoples status symbol makes all the other companies to rise its products price.
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Jeffrey Arulraj

@jeffrey-xA7lUP • Aug 22, 2013

Look at the other way around Some of the product manufacturers have slogged so hard to get the reputation they have build among their customers

The lesser brands are striving to do the same they are trying to bring a name for their companies and once they do that their pricing will also shoot up

Colleges branding is like telling this shoe is ADIDDAS of college so pay more. Well Addidas lives to its reputation but colleges are not. Some branded colleges of today are like scum of tomorrow
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Nayan Goenka

@nayan-Dhpt4N • Aug 22, 2013

CSK AUTO
So should the rich peoples status symbol makes all the other companies to rise its products price.
It is the way market works. You cannot question it. If RR wants to sell a car for a million $, then it does. And it has potential buyers for it. So they will not bring down the price. Eventually other giants have to increase their price. Aston Martin is better looks than RR, if they sell the car for 100k ₹ like other cars in the segment, the idea of making it status symbol would be crapped out. Since status symbol is defined at million ₹

(values are hypothetical to give analogy)
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