Last Resort – Price Break

There has been lots written about how to make your products and services remarkable and how you should avoid competing on price. But what happens when your product isn’t remarkable?

A huge example is the comparison of the Apple iPod to the Microsoft Zune. And right before another major iPod announcement, Microsoft waived a white flag…

With the timing of the announcement so close to the iPod event, Microsoft hopes to piggyback on the overall media attention to generate some sales. (It didn’t work.)

So what if you just bought a Zune right before that announcement? Would you feel ripped off? Or would you hunt for your receipt so you could return your overpriced/undervalued Zune for whatever Apple releases tomorrow?

Then again, like most consumers, I probably wouldn’t have purchased a Zune in the first place. Which is why Microsoft’s last resort with this product is to lower the price.