Price is a Valuable Brand Proposition

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ShoesBranding is difficult.  It involves so much more than just coming up with a name, logo, and general idea of the products or services you want to sell.  It can be so confusing that the average small business owner might not know how to effectively ‘sell’ their business to customers, let alone set the right price for their products.

If this is your situation, do not fret for you are not alone.  In fact, some of the biggest brand names in the automotive and clothing industry have also fallen short of making the best choices for their brand.

Take Gap Inc., for example.  Right now, they are in the process of shutting the doors to over 175 stores nationwide.  Why you ask?  Some experts think it has to do with the launch of their cheaper store, Old Navy.  Apparently low-priced clothing sells like hot cakes, but the problem is it pulls customers away from Gap altogether.  It turns out people like to pay less for their clothing rather than more.

The kicker?  The company is actually making less while trying to keep the more expensive store afloat.  It isn’t working.

The same thing has happened with automotive companies such as General Motors.  In 1990, they launched Saturn under their brand in hopes of offering an affordable alternative to their higher end vehicles.  Needless to say, it flat-lined and turned into a running 20 year joke for the company.

The bottom line is this: marketing a brand solely based on price isn’t the route to go.  Cheaper alternatives to an already remarkable brand won’t add to its value.  As was the case with Saturn, it can actually destroy it.

Why fix something that isn’t broken?  If your customers love what you offer they will pay for it regardless.  Focusing on the quality of the product or the services you provide, is the only sure fire way to increase your brand proposition.

Consider this before you jump your prices up or decide to launch yet another company.

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