Why I Think Google Chrome Pixel Pricing Is Wrong
I can’t argue with the author on this. As I said in my post about the Chromebook Pixel I do think the price is too high for the perceived value, but the real value is still there.
One thing I think many forget is that you get to pick your competition. By pricing and positioning the Pixel against the MacBook Air Google is aggressively defining a Chromebook as a “real” computer and the Chrome OS as a “real” operating system to compete with OSX and Windows 8. Coming out with a less functional unit just to try to keep the price below $1000 would have relegated both Chromebooks and Chrome OS as “value” priced laptop toys, not serious business machines.
When Google unveiled its new touchscreen laptop, Chrome Pixel, Chrome executive Mr. Pichai said
the high price tag was justified and argued that the Pixel stands up very well against a MacBook Air
It is usually a bad sign when a brand uses words like, “the pricing is justified”, let alone comparing against market leader with established track record in the category. Last time we heard the price tag justification it was from then Motorola executive on Xoom pricing. We know how it ended (agreed, one data point does make evidence).
If you are going to justify your price tag the best path is to use cost arguments, signaling to customers that you were doing it only because of your hardship and appealing to their “good will”. Classic example is Starbucks. While you set the prices based on customer value (and definitely not on costs) you do not…
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