Friday, July 25, 2008

Premium Pricing



I encountered the term "premium pricing" in a marketing class last year. It describes the practice of charging a particularly high price for an item when it first comes out, so the folks who want it at almost any cost will pay extra to have it right away. It's the phenomenon behind the early high prices on appliances like I-Phones and Playstations.

I thought of the term recently when I saw the season's first blueberries. They were $7 for a container, but it happened to be my birthday, and I really, really wanted local blueberries on my birthday. I didn't think twice about paying the money, in fact, I felt grateful for the opportunity.

Blueberries are now selling for $4 a container, the same as raspberries. I've also seen this phenomenon with cherries, which started at $10 a pound and are now selling for $4, and potatoes, which can start out at $4 per pound before dropping to $2.

I really don't splurge on many things besides local produce (and good chocolate.) For me paying the initial higher price is a way of expressing my appreciation for the bounty of this landscape and the hard work of these quixotic farmers.

No comments: