We sell products. What do we sell? Do you sell design, quality or service? These are only a small part of commodity pricing.

Commodity price = cost + profit, which is the established pricing model of the vast majority of China's two rounds of enterprises. Although it does not include all, more than 90% will do so. The disguised spell price is also reflected in the spell configuration. Of course, it will also be appropriately affected by the relationship between supply and demand, such as the price increase of hot sales and the price reduction and promotion of unsalable products.

Then we lost to brand players from the beginning - European, American and Japanese enterprises. In the first-class brand circle, the logic is: commodity price = commodity value + brand value. To put it bluntly, cost is only a small part of the price, and the sense of value brought by products to users is the key to pricing.

Intuitively, the price of a Honda monkey 50 can reach 25000 yuan (Japanese local market), while the price of a domestic imitation monkey can be up to 4000-5000 yuan (which means more cheap). In fact, in terms of cost, Honda can do lower（ Those who are familiar with the parts system know that selling the same parts to Honda is cheaper than selling to ordinary manufacturers, but remember that they are the same things). However, Honda uses the sense of value brought to users by monkey to determine the price.

The value of the brand comes from the spiritual and emotional added value to users. This added value is a nonverbal transmission that can be shared in the society and positioned for the user's own society. No one will refuse to spread spiritual beauty. An excellent product can bring users value far beyond the value of the product itself. A good team is constantly designing new brand values and life for users. Users are also willing to pay a price much higher than the cost of the product itself.

The commodity price strategy has been determined at the moment of commodity planning, which is why I said we lost from the beginning. For example, Tesla, from the beginning, has been determined to travel in a more environmentally friendly, efficient and economical way, which also gives users the positioning of scientific and technological elites, environmentalists and the middle class. This is the starting point of Tesla, allowing users to sit in luxury high-end cars, surpass the performance of sports cars and the image of environmental protection. In terms of brand, Tesla's spirit of exploring the universe and deeply changing human life has also won the spiritual resonance of high-end users. Make a new brand born in the sky succeed in one fell swoop without brand accumulation.

Any company's resources and budget are limited, so how to create its own brand user values in limited resources is what we should challenge at the beginning. When I heard that the profits of some first-line electric vehicle brands are only tens of yuan per car, I have to say that these seemingly successful brands are completely an alternative brand road without continuity. If it can't bring users value-added beyond the product, even the best brand can't be blessed. Honda v-go is a good example. Honda brand + Honda design + Bosch core =? Although the planning team has done a good copywriting, the sales data can not be viewed directly because the product itself is no different from the user experience brought by ordinary electric vehicles, or even worse than domestic brands.

Here's a question to think about: what additional value can v-go bring users in addition to the wing logo, compared with Emma Yadi or Mavericks?

When Apple's mobile phones first sold well in China, the price that jumped away from conventional smart phones and even exceeded the price of computers was because Apple knew that the convenience and colorful life brought to users and the endorsement of identity were new values that could not be measured. Apple has absolute price dominance. So far, apple still ranks first among the high-end users by relying on safer privacy / data protection, smoother experience and more perfect and secure app environment.

A product that lacks added value in the planning stage can only be the price competition of the sales department or a product for self entertainment.

After years of fighting, the price of two wheeled vehicles has become a rare model of cost control in China. In this field, Xiaomi model can not survive. Naturally, live broadcasting with goods can not survive, because the core of live broadcasting with goods is still low price + fun, which is indispensable. All the sales model disputes in the two wheeled vehicle industry eventually evolved into a price war. Kx350 will sell well if it sells for 18000 - this comes from the dealers, but it also reflects the cruelty of reality. If you can't bring added value to consumers (commonly known as unable to support this pricing), you can only create added value by pressing the low price.

We have also created many good cases, such as Lifan kpr150. Although the brand could not support domestic cars with more than 10000 yuan at that time, the products brought young users a racing dream. This is the success of KPR.

If the products of a brand can only sell the value of the product itself, their brand is worthless. For an enterprise circle keen on homogeneous competition, the products provided by company a and company B can be replaced. They just need to try their best to lower the cost and the price. "Cheap" is their only value in the eyes of users. It doesn't matter what the brand is.

A low-quality brand will overdraft the value of users, which is often said in the motorcycle circle. Each user will make leeks of domestic brands once. It costs a face saving price, but it buys a lot of trouble. Such a brand is worse than an enterprise that only makes cheap products. Because enterprises believe in short-term ism. In China, no brand is willing to invest real money in brand building, because they don't understand the value of the brand in their eyes

We are not even as good as Indian brands. The above picture shows the Dakar Rally Team of Bajaj and TVs in India and the moto3 team of Mahindra. The investment in brand building will not be wasted, but will accumulate

It is not difficult to understand why Yamaha wants to build robots that can drive motorcycles, Honda wants to develop ASIMO, and the image of a technology brand leaves technology. What else does the brand have?

As practitioners in each two rounds of industry, we should think about the products we are still developing. Can you bring the future to China's two rounds of industry in the future?