SCHMIDPREISSLERBRIEF©
SchmidPreisslerConsultants · Innovative Strategic Advice - Research - Analysis - Market Solutions · Established 1961
May 2026
The price must be worth the money
For some time now, manufacturers of consumer goods have been complaining about declining sales volumes. They often cite rising prices as the cause, which in turn are attributed to higher costs resulting from geopolitical developments. In our view, however, the industry’s problems run much deeper.
During the heyday of the consumer society, pricing was often less the result of precise calculations and more the product of directives from finance departments. The goal was to present record sales and attractive growth figures. Consumers, in turn, were in a phase of pronounced enthusiasm for shopping and consumption. For many, prices played only a secondary role; criticism remained mostly muted and was overshadowed by a general sense of prosperity.
However, a shift began at the start of this decade. Consumption in excess increasingly lost its significance. People began to reevaluate their needs and set different priorities. The consumer society gradually evolved into a knowledge society. As a result, price also became a greater focus in purchasing decisions. Retailers reacted more quickly to this change than manufacturers. With so-called “so-do-I” concepts, private label programs emerged that offered well-known brand products of comparable quality but at significantly lower prices. Price differences of 30 to 50 percent compared to the original brands became increasingly attractive to consumers. Today, supermarket chains and discounters in Germany generate up to 50 percent of their sales with their own brands. As a result, they are no longer mere private labels, but independent brands with professional marketing strategies.
Today, we have advanced another stage in our development, rapidly moving from a knowledge-based society to a values-based society. The consequence is that today’s and tomorrow’s consumers are no longer traditional consumers, but informed and value-conscious individuals.
Modern consumerism is characterized by a “less is more” mindset; it reorders needs and desires and sets new priorities.
Therefore, in the future, price must justify its value. People no longer buy at any price. They pay attention to whether a product is actually worth the asking price. For the industry, this means a fundamental shift in marketing. The luxury goods markets, in particular, face major challenges. While a prestigious brand name was often sufficient in the past, authenticity, origin, and a clearly recognizable unique selling proposition will be decisive in the future. The intangible value of a brand must align transparently with its material value and the quality of its craftsmanship. In the future, therefore, there will be less talk of luxury and more of excellence. Companies should invest strategically in personal marketing. Customer relationships are built on closeness, trust, and credible communication. The exclusive use of AI in direct customer contact carries the risk of weakening this personal connection.
Good communication builds trust and increases customers’ willingness to accept a price as justified. Constant discount campaigns, on the other hand, are not advisable. Especially in the current transition from a consumer society to a knowledge society, frequent price reductions undermine the credibility of the price. Constant price changes unsettle consumers and foster reluctance to buy rather than a willingness to purchase.
If you would like to incorporate the exchange of ideas and the comparison of perspectives and assessments into your corporate and marketing strategies, we are happy to assist you. Send us an email at: Diese E-Mail-Adresse ist vor Spambots geschützt! Zur Anzeige muss JavaScript eingeschaltet sein! We, the SchmidPreisslerBrief Team—Christina Schmid-Preissler, M.A. in Economics; Maximiliana Schürrle, M.A. in Sociology; Alexander Schürrle; and Franz M. Schmid-Preissler—look forward to exchanging ideas with you and send our warmest regards.
Your F. M. Schmid-Preissler
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SchmidPreissler International Strategy Consultants GmbH · Ismaninger Straße 140 · D-81675 München · Tel. +49 89 139 29579
Für den Inhalt verantwortlich (MStG): Franz M. Schmid-Preissler - Anschrift siehe oben
