Burger Vs Vadapav. What is the difference?
Burger will cost you US $ 1 (Rs.55/-) while Vada Pav will cost less than 5th of US$ 1 (Rs.10/-).
Burger is a Brand an Vapa Pav a commodity.
Burger become a brand as it was presented in air conditioned outlet with a happening ambiance , hygienic condition & quality , unlimited time outlet allows you to sit. Perhaps cost-wise Burger may be costing few rupees more , taste-wise Vadapav may scores over Burger.
In short both offers more or less same quantum of food and taste but price difference is 5 times. This 4 times difference people are paying is for experience not for food.
Same is applicable to Starbucks Coffee vs Coffee at South Indian Hotels. Price difference is perhaps 10 times. Cost of Coffee itself may be 2 to 3 times more. They are charging 7 times more money for experience. This is called branded experience.
Many a times professionally person with technically sound knowledge can’t command salary which a person with all round personality can.
This DIFFERENCE in PRICING use to superior experience which people would LOVE to pay is critical. Critical for every business.
In B2B or B2C all kind of businesses experience creators can command premium in pricing. You may be manufacturing best of Vadapav but even though you can’t command Burger pricing. You have to convert your Vadapav into BRANDED experience which is more than just meeting the need but meeting the need with ease and delight added.
Time for reality check and finding opportunity to add EXPERIENCES in your business offerings.