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.

Iterative Path

chrome-pixelWhen 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…

View original post 764 more words

Published by Steve Banfield

Kentucky born, Seattle based. Entrepreneur. Team Builder. Photographer.

Join the Conversation

1 Comment

Leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: