09-23-14 11:40 PM
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  1. A_Aviator_A's Avatar
    Why aggressive consumer pricing on the passport may backfire:

    Lets face it, the Passport isn't going to woo the Apple fanboyz away from their gadget-lust and it will not appeal to the masses upon masses of Android conformists. The days of competing in youth consumer markets are over for Blackberry.

    Blackberry is marketing the passport to high end niche industries and corporate enterprise. Thus there is more value in establishing the PASSPORT's reputation as a real high tech business device. Its specs and uniqueness already give it an edge. Thus I believe that the corporatocracy would want a product which is recognized as a more expensive option compared to an i-phone. It seems unorthodox business thinking, but something tells me its the right move.

    Thoughts? Am I wrong in thinking expensive, is better, from a branding standpoint?
    09-02-14 01:37 PM
  2. lnichols's Avatar
    Businesses have been trying to save money with BYOD initiatives. Government is trying to reduce costs everywhere. So if your plan is for a few C suite execs from a company to get them and not anyone who actually is seen using the device then that strategy will work. This phone will still be competing with iPhone and high end Android devices for a seat at the table in corporations, and way over pricing will cause many to go with the device with more apps, and a company more healthy backing them IMHO.

    Posted with a BlackBerry Z10
    miketko and sentimentGX4 like this.
    09-02-14 01:45 PM
  3. AnimalPak200's Avatar
    It's not about pricing expensively, or cheaply... it's about finding the right price.

    The Passport has so many challenges to overcome, being so different and being a BlackBerry,.. that it will need a decent grass roots momentum to succeed. I know to you it may seem like a premium device, but to most others it represents an unknown and a risk. Giving it too high a price will quickly take it out of consideration for someone that feels that way.

    Posted via CB10
    nah.uhh, mnc76, MikeLip and 7 others like this.
    09-02-14 01:47 PM
  4. John Vieira's Avatar
    If BlackBerry was still considered a premium brand, then sure, why not?

    But the brand has taken major hits and now HAS to price aggressively to get devices in people's hands, regardless of corporate or consumer.

    They will only restore their brand by getting those devices in people's hands and making sure they work perfectly.

    If an iPhone has an issue, it's brushed aside, it will be updated or fixed on the new one.

    But BlackBerry doesn't have that ground, it HAS to work. Period. Especially because corporate customers are no fools and are actually starting to listen to their IT department.

    IT departments are overwhelmingly starting to advise for iPhone and Android due to being easier to manage, with more extensive documentation.

    Years of slow, freezing and non functional BlackBerry devices, along with this new OS that is simply still missing features, and is not catching on has left a sour taste in their mouth.

    It's as others have said, BlackBerry is in this situation through their own fault, and whole they have made major strides to fix it, it's still not working.

    The extreme case is to just abandon the BlackBerry name and Rebrand,but that's difficult in a firm as established as BlackBerry is.

    Posted via CB10
    dejanh, mh1983 and JeepBB like this.
    09-02-14 01:51 PM
  5. Aneres11's Avatar
    I personally found the price of the Q10 too expensive, but I still bought one. I will buy the Passport regardless, as in really really like the look of it and am truly excited to have one. But I honestly think it will have a high price tag.

    The Classic will be the cheaper option in my opinion. I think that's the phone that BB expect to appeal to both the business and casual users who want a physical keyboard.
    09-02-14 01:55 PM
  6. nah.uhh's Avatar
    I think it should be aggressive in certain markets..

    For example.. most of us on cb would buy the phone if we could afford it. Specs alone, it's the phone we've been waiting for.

    That being said, I think it should be priced aggressively during release.. maybe..
    549 regular price / 399 for pre-order / 449 on launch day.
    100 on 2 year (north American) contract on launch day, 199-249 regular contract price.

    BlackBerry might be shorting them selves on profit off a single device, but that doesn't matter much if most people who want it can't afford it.
    For example.. 200$/1000 devices is the same as 100$/2000 devices

    What do you think? Disagree?
    09-02-14 02:07 PM
  7. Mr4aces's Avatar
    Why aggressive consumer pricing on the passport may backfire:

    Lets face it, the Passport isn't going to woo the Apple fanboyz away from their gadget-lust and it will not appeal to the masses upon masses of Android conformists. The days of competing in youth consumer markets are over for Blackberry.

    Blackberry is marketing the passport to high end niche industries and corporate enterprise. Thus there is more value in establishing the PASSPORT's reputation as a real high tech business device. Its specs and uniqueness already give it an edge. Thus I believe that the corporatocracy would want a product which is recognized as a more expensive option compared to an i-phone. It seems unorthodox business thinking, but something tells me its the right move.

    Thoughts? Am I wrong in thinking expensive, is better, from a branding standpoint?
    I agree with op that the PassPort has a lot to overcome to be accepted. BlackBerry can not afford to under price it for the general public and charge more for their Enterprise customers. Maybe they will release a Foxconn version in a year?
    09-02-14 02:09 PM
  8. lokoalex's Avatar
    I would love to agree with you guys, but I feel that a device of this power will be very expensive. This device will only appeal to people who can truly afford it. Many will look at the price tag and find something less expensive.
    As far as corporate America many businesses have done away with Blackberry. Especially since BYOD is allowing employers to reduce the cost of managing devices. Employers wont care about glamour for the employees, they only care about productivity. If device X and do the same thing for less than why go with device Z.
    I believe if they overprice this it will be a step back for Blackberry. They have made a minimal stride in market share as it is.
    himeshshah likes this.
    09-02-14 02:21 PM
  9. hd56fox's Avatar
    "For example.. 200$/1000 devices is the same as 100$/2000 devices"
    1$/40,000 Mercedes = 40,000$/1Mercedes , right ?
    09-02-14 02:33 PM
  10. deadcowboy's Avatar
    With phones like the OnePlus One coming to the market (with GS5-like specs for $299), how can anyone afford to price a phone highly anymore? Surely BlackBerry can't.

    Posted via CB10
    SBrowne823 likes this.
    09-02-14 02:36 PM
  11. lokoalex's Avatar
    With phones like the OnePlus One coming to the market (with GS5-like specs for $299), how can anyone afford to price a phone highly anymore? Surely BlackBerry can't.

    Posted via CB10
    Blackberry needs to try to win more people over to their side instead of push them away. They have done plenty of damage to their image. Just look at the Playbook.
    himeshshah likes this.
    09-02-14 02:45 PM
  12. mnc76's Avatar
    Every time a new BB10 device comes out, BlackBerry prices them to match flagship prices from brands such as Apple and Samsung.

    Every time, there are a group of people who believe this is the right thing to do because BlackBerry must establish itself as a "premium" brand.

    It failed for the Z10.
    It failed for the Q10.
    It failed for the Z30.
    BlackBerry Z3 was priced (reasonably) aggressively, and (according to Chen) is actually doing well.

    They say that the definition of insanity is doing the same thing over and over again and expecting a different outcome each time lol.

    Not saying anyone here is insane though. Just that we've been down this road before. Let's try something different for a BlackBerry flagship shall we? Just once. Just for the heck of it
    jcraig, Katika99, dejanh and 6 others like this.
    09-02-14 03:06 PM
  13. Hello Blackberry World's Avatar
    They need to keep their margins high. Do the cost savings during the design rather than doing it at time of market. Blackberry must maintain 46-50% as long as they have lower sales. Higher margins mean they need to sell less phones. It's business. See the effects of discounting in the image below.Don't price Passport aggressively!-margin-101.jpg
    09-02-14 03:11 PM
  14. jcraig's Avatar
    Yeah, even though the Z3 was priced aggressively as a lower spec device, I think that the Passport will need to be just as aggressively priced in its tier of devices. They can't charge 699 for it, they just can't. Is it worth that price? Most definitely, but they have to ensure they get them into as many hands as possible. Especially since with the lack of US Carrier support most of us will be finding a way to just buy one outright.
    himeshshah likes this.
    09-02-14 03:19 PM
  15. Hello Blackberry World's Avatar
    Example to above. If Blackberry pegs sell price based on cost say that the passport costs more to make. Most phones easily go for $599 so let's say $750 for the passport. Let's do an example based on the limitations of this graph. Assume 40% margin (blackberry's margin is closer to 46%) and offering a 15% discount (599 to 750 is actually 20%)
    You would need to increase sales by 60% (more like 75% if using $599 discounted, $750 list, 46% margin) before making any additional profit.
    Not a good business decision in a niche market. People who want a cheaper phone can by Q10, Z10, Z30 and Z3.
    09-02-14 03:22 PM
  16. THBW's Avatar
    Businesses have been trying to save money with BYOD initiatives. Government is trying to reduce costs everywhere. So if your plan is for a few C suite execs from a company to get them and not anyone who actually is seen using the device then that strategy will work. This phone will still be competing with iPhone and high end Android devices for a seat at the table in corporations, and way over pricing will cause many to go with the device with more apps, and a company more healthy backing them IMHO.

    Posted with a BlackBerry Z10
    100% spot on. Business and governments are budget conscious and they think very carefully about pricing. Even though you don't think you are competing with Apple or Samsung, you are. Price it well and enterprise will buy more units. It is that simple. Pricing needs to be aggressive to get Blackberry back in the game.
    himeshshah likes this.
    09-02-14 03:22 PM
  17. Hello Blackberry World's Avatar
    Yeah, even though the Z3 was priced aggressively as a lower spec device, I think that the Passport will need to be just as aggressively priced in its tier of devices. They can't charge 699 for it, they just can't. Is it worth that price? Most definitely, but they have to ensure they get them into as many hands as possible. Especially since with the lack of US Carrier support most of us will be finding a way to just buy one outright.
    Keep in mind this isn't a consumer phone. It's a niche business phone.
    09-02-14 03:24 PM
  18. Mr4aces's Avatar
    With phones like the OnePlus One coming to the market (with GS5-like specs for $299), how can anyone afford to price a phone highly anymore? Surely BlackBerry can't.

    Posted via CB10
    Apples and Apples, not Apples and Cucumbers
    09-02-14 03:24 PM
  19. Hello Blackberry World's Avatar
    100% spot on. Business and governments are budget conscious and they think very carefully about pricing. Even though you don't think you are competing with Apple or Samsung, you are. Price it well and enterprise will buy more units. It is that simple. Pricing needs to be aggressive to get Blackberry back in the game.
    Bundled with the BES services Blackberry is still very attractive even when selling higher price phones. Keep in mind when big businesses buy they aren't paying single pc prices. Often they are buying at a significant discount. Especially when subscribing to additional BES and protected services.
    bambinoitaliano likes this.
    09-02-14 03:26 PM
  20. THBW's Avatar
    Yeah, even though the Z3 was priced aggressively as a lower spec device, I think that the Passport will need to be just as aggressively priced in its tier of devices. They can't charge 699 for it, they just can't. Is it worth that price? Most definitely, but they have to ensure they get them into as many hands as possible. Especially since with the lack of US Carrier support most of us will be finding a way to just buy one outright.
    Absolutely, Blackberry has a HUGE barrier-to-entry problem. Blackberry must remove any and all barriers to purchase. Just think about where they currently sit in the competitive landscape. Price it to Sell it, boys and girls.
    nah.uhh and himeshshah like this.
    09-02-14 03:27 PM
  21. Hello Blackberry World's Avatar
    Absolutely, Blackberry has a HUGE barrier-to-entry problem. Blackberry must remove any and all barriers to purchase. Just think about where they currently sit in the competitive landscape. Price it to Sell it, boys and girls.
    It would kill blackberry's stock. Companies run off of margin, not sales. Blackberry only needs 10 million phones for blackberry to consider the hardware business a success. This is based on high margin. If you change this to a much lower sale price just to sell you can sell significantly more phones and still make less money.

    That's not good.
    09-02-14 03:30 PM
  22. THBW's Avatar

    It failed for the Z10.
    It failed for the Q10.
    It failed for the Z30.
    BlackBerry Z3 was priced (reasonably) aggressively, and (according to Chen) is actually doing well.

    They say that the definition of insanity is doing the same thing over and over again and expecting a different outcome each time lol.
    These few simple sentences says it all.
    09-02-14 03:31 PM
  23. THBW's Avatar
    It would kill blackberry's stock. Companies run off of margin, not sales. Blackberry only needs 10 million phones for blackberry to consider the hardware business a success. This is based on high margin. If you change this to a much lower sale price just to sell you can sell significantly more phones and still make less money.

    That's not good.
    But how do you maintain an ecosystem (it is important for enterprise as well) if you don't keep your volumes at a certain level. How do you keep your phone in carrier stores and websites (important for small and medium size businesses)?

    Blackberry shouldn't worrying about hardware margins. They make their money on BES and other enterprise services. Get the dam phone into people's hand so that developers start to support the ecosystem. Do you really think selling a small handful of phones at high margins will have any impact on the company or its reputation? No. End of Story.
    nah.uhh likes this.
    09-02-14 03:41 PM
  24. Tom_Brady's Avatar
    I agree. BlackBerry needs volume at this stage in the game not mark up. $100 on a data plus plan and $200 on a data light plan from the Canadian Carriers.
    himeshshah likes this.
    09-02-14 03:45 PM
  25. PFman's Avatar
    I wonder how much the screen is costing them per unit? Unique size so a custom order. Will they have the guts to order a decent quantity I wonder? If not the price will need to be high and the margin might not be.
    09-02-14 03:46 PM
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