Value Pricing – Challenging Consumer Intelligence…

Other day I went to a neighborhood grocery store looking for wedding “Shagun” envelope (which is nothing but a normal envelope with one rupee coin stuck to it). I was completely amazed by the 19 rupee sticker price; so I being curious pricing enthusiast, I started looking for exactly same envelop without one rupee coin.. and it was available for INR 8, which is also very expensive considering the fact it should not take 1.50 or 2.0 rupee to make one…

But question is how addition of one rupee coin, enhances envelope’s its value by Rs 11. Looks like pricing strategy for these kind of niche products is betting on consumer not paying any attention to price at all and seriously challenges consumer intelligence… thoughts?