Magic Price Points

News Flash: Frugality.

Hoo, boy – can’t we just have a Second Great Depression in peace and quiet? I mean, if we’re going to go plunging into an economic abyss, is there at least some way we can do it without diving through a bottomless well of advice?

I mean, how many times to we need to see, hear, and read such priceless gems as: “If it looks too good to be true, it probably is. Beware of promises of high returns without risk.” Thank you, Money magazine.

Or how about this chestnut: “Make an effort to cut back a little, such as dining out once a week instead of three nights a week.” I appreciate the tip, Kiplinger.

Here’s a real breakthrough: “Store-brand products in grocery stores are often made by the same manufacturers as the brand-name items. If you take prescription drugs, ask your pharmacist if a cheaper, generic version is available.” It’s like the clouds parted, BusinessWeek!

Look, we’re in the consumer products industry. We thank our lucky stars every time the American shopper gets excited and spends on something besides necessities. Why? That’s where the margin dollars are.

But didn’t their parents teach them anything? Growing up, I was treated to two solid decades of “We didn’t have any of that stuff when we were kids. But we were happy. We were poor – we just didn’t know it.” Such recitations were a Baby Boomer rite of passage.

We even learned about the core retail concept of “Magic Price Points.”

The essential Magic Price Points we learned:

• Three Dollars

• $20

• You Don’t Need It!

So, people, listen. Some of us paid our dues in the study halls of frugality. Must we be flooded with “how to live cheap” advice from here to Kingdom Come?

Better you should pack extra features and design into your products, and clearly assert the added value to the consumer. Take my advice – it could save you plenty.