Mobile Pal Tech

Whereas the technological capabilities of the HTC EVO 4G mega phone are never in question, we have to wonder what will happen to the pricing strategy. It is recognized that the HTC EVO 4G mega phone will initially cost a lot more than the final price because there are few entrants to bring about economies of scale or to share the costs with the manufacturer. In any case a price rise can be justified by the mere fact that the HTC EVO 4G mega phone will have functionality that goes beyond anything that we have seen the ordinary mobile phone doing.

There are a number of pricing options that are open to the HTC EVO 4G mega phone but each of them will have implications in terms of the uptake of the technology on a long term basis. The obvious pricing strategy would involve a deposit which is followed by a monthly subscription fee. The advantage of such a pricing strategy is that it retains a regular income for the retailer and also allow for buyers to pay for the item without having the cash outright. If they have jobs then it becomes even more convenient.

Normally pricing strategies that rely on deposits and monthly installments make certain demands on the consumer and this normally relate to contracts and delivery of services. A person who is considering the option of buying the HTC EVO 4G mega phone will be wondering whether they will be trapped into a contract for a very long time even when they indicate that they would like to get out. The other issue is whether the credit referencing process will complicate this sort of higher purchase.

Another pricing strategy that could possibly work for the HTC EVO 4G mega phone is to have a one off price that includes all the installments. This gets rid of any ambiguity and releases the customer from any obligation to the company. Unfortunately this does not always work as planned. For example you cannot offer an unlimited package to customers when you do not know when the technology itself will become obsolete.

At least with the monthly subscription you can give the clients the ability to opt in and out of the scheme depending on how they are performing. The permanent contract cannot be allowed to go on when the services are not capable of being delivered.

In any case the full payment might just be way above the average disposable income of the target consumer group. A far better solution is to compromise and try to reconcile these two pricing strategies in the hope that they will ultimately lead to a coherent pricing strategy that retains customers but also works in favor of the independence of the manufacturer from market forces beyond their control.

One way in which this could work is to leave a significantly loose contract that allows the buyer to go elsewhere if they are not satisfied with the services on offer from a particular retailer.