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There's no sugar coating it. At $899, the Galaxy Z Flip 7 FE is stupidly expensive. It's anything but affordable for a device that's basically a rebadged Galaxy Z Flip 6 with a slower chipset. If you're already spending that much, might as well spend $200 more and get the Galaxy Z Flip 7 instead.
As Chris, one of our readers, points out this absurd pricing may actually be a feature, not a bug. Perhaps Samsung is relying on the tried and tested price anchoring trick that fast food companies use to upsell you.
Ever wonder why the price difference between a regular and large meal at McDonald's, or any other fast food chain, is so insignificant? It can often be $1 or less. You as the customer are anchored in on the lower price first and the small premium to get the “better” option feels like a no-brainer. You're already spending $9 on a meal, what's another $1 to get more fries and a larger drink?
The intention was always to sell you the more expensive menu item but you may have never justified the value had there been no comparative price point. The lower price is there just to capture your attention. The upsell is the real goal and most customers will instinctively go for that.
Samsung should have ideally priced the Galaxy Z Flip 7 FE at $700-$750 as that would have been a more significant difference compared to the Galaxy Z Flip 7. At $899, it looks a lot like the Galaxy Z Flip 7 FE's role is not to sell but to steer towards the Galaxy Z Flip 7, which most likely has more margins for the company.
The $200 difference between can easily be justified when you compare the phones. The Galaxy Z Flip 7 FE gets you a larger cover and foldable display, brighter panels, a thinner body, a larger battery, a superior chipset, more RAM and storage. Suddenly, it doesn't seem like the right choice to opt for an obviously inferior device when you can pay a little bit more and get one of the best clamshell foldables yet.
Now the customer might think they've reached this conclusion all on their own. That they've looked at all of the angles, done the comparisons, and made the rational choice to spend an extra $200. The fact of the matter is that the decision has already been made for them by the way Samsung has framed these options.
The immediate goal is to drive sales for the flagship model and the price anchoring trick is bound to do that, but Samsung isn't going to hang the Galaxy Z Flip 7 FE out to dry. It retains the option to boost sales volumes for this device down the line by implementing strategic price cuts that enhance its value proposition.
Weaker Galaxy Z Flip 7 FE sales at launch won't bother Samsung much. It could cut the price by $100-$150 either through discounts or enhanced trade-in values a few months later to realize the device's true affordable potential. It's a strategy we've seen the company implement with its Galaxy S FE models as well, but this time around, it's a bit too blatantly obvious with these two foldable phones.
Since the Galaxy Z Flip 7 FE is essentially a spare parts phone made from components Samsung already had lying around, there isn't as much of an R&D cost to absorb, nor will it have the higher marketing spend of the flagship devices. Even with strategic price cuts down the line, it won't be too much of a margin hit for Samsung to sell the device in the $700 range.
This device is a very clever decoy from Samsung to take in as much of the early profits from flagship sales as it can, as the sales volume tends to be at its highest at launch and then gradually trends down in the following months.
So if the Galaxy Z Flip 7 FE feels like a bad deal right now, that's because it was never meant to be a good one.
The post This McDonald’s trick explains why Galaxy Z Flip 7 FE is stupidly expensive appeared first on SamMobile.