I often think Apple can do no wrong. When they do something, it seems well thought out and researched. This is such a strong opinion of mine that if they do something counter to what I believe, I question my beliefs.
The iPhone 7 Case Study
Such was the case when they released the iPhone 7. You see, I’m a strong believer in good, better, best product portfolios. When teaching classes, I often use iPhones as a great example. There were always 3 versions with different amounts of memory. Then came the 7.
The iPhone 7 only had two versions based on memory. Sure they had the two different screen sizes, but in the old days, they would have had three memory versions of each size. I was flummoxed. I wrote a blog about it pontificating that maybe the three models they came out with were their attempt at good, better, best, but even I wasn’t convinced. Luckily I was able to repress my confusion and pretend it never happened. 🙂
Fast forward 3 years. I’m considering an iPhone 11 and started using the compare phones features on Apple’s website. Then I saw it. When I put the 7 up against the X or the 11, the X and 11 both have 3 memory versions. The 7 still only had two. Hallelujah!!! I’m doing a happy dance. Why?
I’ll take that as proof positive that Apple made a mistake, realized it, and fixed it in the later models. They have re-adopted good, better, best. Now, instead of Apple disagreeing with that position, they reaffirmed it. I don’t have to change my belief structure or try to explain Apple’s position any more. The universe is back in alignment and all is right with the world.
The lesson you should take from this blog … Use Good, Better, Best pricing. Even Apple thinks it’s the best way to go.
**Note: Mark Stiving has an active LinkedIn community, where he participates in conversations and answers questions. Each week, he creates a blog post for the top question. If you have a question, head over to LinkedIn to communicate directly with Mark.
Tags: pricing strategy, pricing value