Unforgiving Trends of Service Pricing

Feb 17 , 2024
By Kidist Yidnekachew

Lately, I have embarked on inquiries regarding the pricing structures of various service providers. The motivation behind is a prudent approach to managing expenses while still enjoying occasional indulgence in treatments, rather than being driven by stinginess or an excessive focus on prices.

At a hair salon near my residence, I sought a hair dye and a haircut. When inquiring about the cost, a vague response was given to me by the hairdresser, assuring me it would not be excessively expensive. Trusting these assurances, I agreed to the services.

The bill was surprising. Given the modest nature of the salon which lacks extravagant features and exceptional skills, the hairdresser charged what I deemed an unfair amount.

Overpriced commodities are a significant concern for both consumers and businesses. In various markets, certain goods and services may be priced higher than their intrinsic value, driven by factors such as limited supply, high demand or marketing strategies. Addressing the issue of overpriced commodities requires a combination of consumer awareness, market competition, and regulatory measures. Open communication of asking prices beforehand provides a fair and transparent marketplace, benefiting both buyers and sellers in the long run.

The potential for exploitation, as sellers may take advantage of consumers who are unaware of the fair market value or the actual cost of production, is a common issue. This can lead to dissatisfaction among customers who later realise they paid more than what the product is worth.

The situation becomes more complex when it is a service. As an intangible offering, their values are determined upon consumption or even after. Service providers should have detailed price lists for their offerings. This helps customers understand the cost and make informed decisions. Transparency is how lasting trust is established.

Communicating the asking price beforehand allows consumers to be comfortable with their decisions based on their budget and the perceived value of the commodity. It also promotes fair competition in the market, as businesses are compelled to justify their pricing strategies based on quality, features or unique selling points. Understanding the factors that influence pricing in a particular industry is helpful.

For consumers, understanding the fair market value and researching prices before making a purchase is essential. This can be done through price comparison websites, customer reviews, and seeking recommendations from trusted sources. In some cases, negotiation might be possible, especially for services where pricing is not fixed. It is worth asking if there are any discounts, promotions, or package deals available.

I do not believe using online reviews and ratings to assess the reputation of a service provider is the norm in Addis Abeba. It should be. Although relying solely on other people's opinions is tricky, it provides insight into what type of service is expected.

Regulatory bodies play a role in ensuring fair pricing practices, implementing laws to prevent price gouging and protecting consumers from unfair business practices.

Having learned from the hair salon incident, I now make a point to inquire about prices before using most services. I recommend being aware of prices beforehand, whether at a hair salon or any other service provider, to make informed decisions and avoid unwelcome surprises.

PUBLISHED ON Feb 17,2024 [ VOL 24 , NO 1242]

Kidist Yidnekachew is interested in art, human nature and behaviour. She has studied psychology, journalism and communications and can be reached at (kaymina21@gmail.com)

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick


Fortune news