A lesson in pricing

There’s a #scene in #GovindNihalani’s ‘#ArdhSatya’ which goes like this.

The characters of Shafi Inamdar, Om Puri and a third police officer finish a meeting, sit in a taxi and are about to leave from the place.

Suddenly a voice is heard off camera: “Excuse me gentlemen”.

By then, the doors of the taxi are shut and the taxi is about to leave. Now, we see suspended Inspector Mike Lobo, played by Naseeruddin Shah.

Naseeruddin Shah: “Excuse me gentlemen. Excuse me.”

By then the taxi is leaving and Om Puri asks for it to stop. Naseeruddin Shah taps Om Puri’s window. Om Puri opens the window.

Naseeruddin Shah (after Om Puri opens his window): “Can you lend me some money please? Can you lend me some money, please. My wife died just this evening and as things stand, I don’t even have the money to bury her. Please help a good cause. Anything counts. From 50 rupees. Or even 5. Please help a good cause. Even less if you like.”

In my view, this has one of the most important lessons in #pricing.

If we are starting at Rs 50, we must give the last offer at around Rs 45 at the most.

If we want our last offer as Rs 5, we must start from a maximum of Rs 8 or Rs 9.

By costing in the manner of ‘Rs 50 or even 5” we simply give the impression that we have no idea what we are talking about.

Thoughts welcome.