From an interview with Mr. Michael E. Porter, an international authority on competitive strategy, to choose the price of a product, it must be fixed before “an emotional and rational context” and then, you can calculate the price. We also must calculate how much value created by us during our production process, we are giving our customers with the sale of the final product, in addition to the basic fixed costs:
- Employees labour
- Raw materials needed
- Cost of packaging
- Transport fees
- Advertising and marketing
Under this premise, our thermal oil heaters are:
- Ready to be bought by enterprises in all industry sectors;
- Technologically adaptable;
- Economically profitable;
- They have innovative features and overall,
- They add value to the processes for which are acquired.
If you should choose one of these characteristics as main peculiarity of our heat generators, which would you stay?
In fact, PIROBLOC updated in the last two years the design of our thermal oil heaters and included in its list of standard products, some new boiler models manufactured in response to a new demand from a certain market. On the other hand, PIROBLOC has obtained the authorization to manufacture under specific design codes required in countries that they have to meet with regulations different than those of the EU.
Finally, and returning to the emotional context in which it should be included each product, remember that the customer’s personal point of view and what he is willing to pay for a proposed product or service, is based on the perception of their characteristics (quality, sturdiness, finishing) and on emotions he expects to get from it; memories or feelings that they join to it.
Summarizing, why not also calculate the intrinsic intangible value of a product?