Thanks to everyone who replied to last week’s newsletter about premium pricing. As you can probably imagine, a few people pointed out that travelling to Kiev for the bank holiday weekend seems to have attracted an incredibly premium price!
This is, of course, due to the European Cup Final that weekend and tens of thousands of Liverpool and Madrid fans making their way there.
Now there’s a difference between a premium price and a plain rip-off, and Thomas Cook have had a bit of criticism recently over the price of their flights. A couple of years ago, they flew Man City fans to Kiev for a game for £299 return. However, they’re charging £899 for a flight to the European Cup Final.
On the face of it, it’s the same flight to the same place. But a combination of the demand, the scarcity of planes on bank holiday weekend, and the limited landing slots at Kiev airport, means the cost has gone up.
As someone who is having to take it on the chin and pay a premium price to go to Kiev, it does pain me a little bit. And don’t get started on the accommodation costs!
But it is a European Cup Final and, let’s face it, I really, really, really want to go. And is it actually any different to the principle that package holidays are always more expensive while the kids are off school?
The key to successful premium pricing is finding something where everyone’s happy. It is a fine line, so do make sure you get the balance right. A lot of people are unhappy at Thomas Cook and getting it wrong could lose them customers in the future.
Real premium pricing should be a win-win for all parties.
One silly European Cup-related example I’ve enjoyed this week is a business selling red and white checked flags on Amazon. They’re selling it as an Arsenal flag for £2.90 but, if they call it a Liverpool flag, it goes up to £3.25. And it is exactly the same flag. Cheeky……or just good business sense???
If you have any other examples of good premium pricing, just let me know.
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