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Saturday, March 10, 2018

Bhutanese style of relative pricing strategy and replication of ideas


Bhutan has come out of conventional marketing and business era. Back in the ages, in bygone years, people use to market their products by carrying on their back, crossing hills and mountains as Bhutan’s landscapes propels. During this time income were so less and the expenditure too. Cash money is less known to people and so precious. It was during that time people were considered rich if they own many mules and herds of cattle. Slowly with arriving of modern infrastructures available at their own desires, people managed to change their tastes and preferences with regard to the conduct of business.

To this age, we can observe continuous change within 24 hours even. The best part of this changing reality is that we are presented with options to choose which are so tempting and confusing at times. With modern infrastructure, we have changed aspects of living a decent life. Now the reality is business and technology go hand in hand without one another its purpose is defeated. As business becomes the growing reality, ideas emerge, competencies differs, and people resort to any strategies to gain leverage over others in terms of gaining a profit.

We are entangled but so in our comfort zones. To come out of it must require well balanced explanation on living and reality aspects of life. Nonetheless, we Bhutanese are immensely consumed so in our profit-minded goal. Everyone wants to achieve something out of doing small things whether feasible or legal. The legality is never questioned by the conscience of the people if there is something to gain out of it. Forget about ethics and integrity. Actually we assume something as gained if we have in our possession but on the other it is the fact of having owned a suffering out of material possession.

How the relative pricing strategy might have come into effect in Bhutanese markets? The market we have for our business is so complex.  It offers a variety of choices but it is observed to be at the mercy of the customers. The pricing for our commodities, products and services are relative phenomenon. How is it but? It can invite compliments and criticism for the same while putting forth this idea of commercialism and pricing strategy. However, it is the reality that needs immediate attention of the buyers and stakeholders.

The price for our products and services if not to generalize has not been arrived at with proper costing. The components of production are never considered for the purpose of arriving at a beneficial price. Like light, transportation, cost of raw materials, labor charges, and other expenses related to the production is not considered well enough. The competition in prices are usually related to the other business man or competitor in the market. For instance, Mr. A sells a product AA at a price of Nu. 50, Mr. B thinking to gain leverage over the competitor, offers a discount of Nu. 5 and sells at Nu. 45. What’s wrong in this product from the buyers’ point of view? The relative pricing strategy. The initial cost of product AA is considered for the pricing by another marketer. However, it can offer a choice of different prices of the product, the initial price defined is not proper and well calculated. This strategy goes on replicating one another in the market and consumers get agitated and confused as to why the prices are alarmingly increasing. Thus increase somehow, from the simple observation can be attributed to this strategy.

In a similar case, business put ups have the same taste. Have you ever observed the replication of the business strategy in a markets? The same idea of the business though not copied from each other needs to rethink on the economic benefits. A cabbie seems to generate huge income than normal officers in the offices, so everyone wants to become a cabbie. Wow! Another thing is a travel agent generates huge income in a short while. Everyone wants to open up a travel agent and become a guide too because of the tips. It is evident to prove that nobody wants to come out of the comfort zone but they want to earn something at little cost. How haggard are we? Have you ever noticed this market trend? We should change this market trend but so first is to do with our mind.  
I would like to welcome your ideas and contribute to constructive debate!








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