The Truth About Price Bias: Lessons from Everyday Life and the LED Screen Industry

Can you guess when we tend to use the idea that "a high price means high quality"? It's often when we're unsure about the quality of a product. Here's a true story:

One day, Robert received a call from a friend who had just opened an Indian jewelry store in Arizona. She was excited and told him about an incredible situation she faced. The story goes like this:

She had a batch of emerald jewelry that wasn’t selling well. Despite the good quality matching the price, no one was buying them. It was peak tourist season, and the store was crowded. To sell these items, she tried many tactics: placing them in a prominent display to catch attention—no luck; having the sales staff push them hard—still no success.

Finally, before leaving town to buy new stock, she left a note for the sales clerk: “All items in this case, price cut by 1/2.” She thought even at a loss, she needed to get rid of them. A few days later, she returned to find everything sold out. Initially, she wasn’t surprised, but then she realized that due to her messy handwriting, the clerk read “1/2” as “2.” All the jewelry was sold at double the original price! This left her completely stunned.

What does this story tell us? For customers who don’t know much about a product, they often judge by the principle “high price equals high quality.” In this situation, consumers become easy targets for businesses. Think about it.

The LED display industry sees similar phenomena. The LED display market has developed for decades, with both technology and prices being very transparent. The price of an LED display is determined by three main factors: LED chip brand, power supply brand, and receiver card brand and model. Despite the transparency, many customers unfamiliar with the industry end up paying several times more than the actual value of the LED display. They don’t realize the high prices are often due to packaging by the seller, large company scale, many staff, and inefficient processes leading to higher costs, plus some brand premiums. This is why their prices are 2-4 times higher than those of regular companies.

At EURYLED, our business philosophy is honesty and integrity. We always explain the prices of different pixel pitches, LED chip brands, receiver cards, and power supplies to our customers. Then, we recommend suitable options based on their actual budget. This way, customers not only learn about the industry but also get products that fit their budget and achieve the best return on investment.

If you're looking for transparent pricing and reliable LED display solutions, contact us at EURYLED today. Let's find the perfect LED display for your needs without breaking the bank!

Benny Lam

08/08/2024