Have you ever wondered how you could increase your pricing and actually get customers to bite? Pricing is a key factor in any business and has a huge impact on your profits. If this is one of your business goals, you should consider the state of your brand’s image. You guessed it – there’s a correlation between branding and pricing.
The truth is, we care about aesthetics. Customers notice details that can make or break a sale. They’re even willing to pay a premium for brands with a good image. It’s why we pay six bucks for the cup of Starbucks instead of the $2.00 drip coffee at the place next door. It’s why Toyota can charge 35-95K for a Lexus, while their other cars run at about 18K. (Yep, Lexus is owned by Toyota)
Yes, these are huge companies. But even if you’re a small business, you should be investing in your brand.
Think about this: if customers see that you’re not putting effort into your image, then how can they trust that you put energy into your product? There’s a link between how we perceive quality and brand image.
Companies who rebrand are even able to increase their prices once the process is complete more often than not.
Of course, product quality matters. A study found that while customers were willing to pay a premium for brands with high end images, the quality of a product still came first. It’s all about finding that ideal balance.
You should also consider that not all consumers are going to respond the same way to pricing. That’s why it’s so important to know your target audience and tailor your brand to their needs and personalities. Research them, learn about their interests, where they live, the other things they buy – even their income levels. All of this will get you closer to a brand designed for your audience; an audience that’s willing to pay what you’re asking for.
When customers are willing to pay more for a products from a company with a strong and consistent image, it’s hard to deny that your brand has an impact on pricing. Businesses that invest in their brands see a strong ROI (return on investment).
Building a brand instead of a business is one of the best investments you can make.
Ready to show your brand some love? I can help. Let’s chat.