Brand is an identity that differentiates you from your competitors. It can be name, logo, tag line or the value your customer perceive from your brand. It’s important to understand your brand value in order to give a right price tag to your product or services.
A lot of people asked “How do I price my product and service?” The key point in giving a price tag to your product and services depends on what perceived brand value are you giving to your customers. People see a brand not just based on the name, your tag line or your logo design. They see it in the perspective of what value they are getting by following your brand.
1. Think Value for Money
First strategy in creating a brand value is to think what value your customers are getting in exchange for their money. People buy a product or a service not because of your product’s design is good or how long your brand existed in the market. They are buying because they want your product to solve their problem or to let them accomplish their task/jobs by using your product. Customers often think in the terms of benefits they get by using your product. If you brand does not provide any value in terms of benefits, there’s no reason for them to spend their dollars with you.
For instance, let’s talk about airlines industry. In Malaysia, there are two major airlines company operating – Malaysia Airlines (MAS) and Airasia. MAS was the first airline company operating in Malaysia and Airasia emerged after latter years. Airasia is known as low-cost carrier which means they charge lower prices for their seats. Comparing to MAS, airlines seats from Airasia is cheaper but they charge separately for luggage and meals. While MAS fares includes free luggage up to 20kg, free meals on board, comfortable leather seats, larger planes and compartment areas. So even though MAS fares are a bit expensive than Airasia fares, MAS is still profiting from students, tourists and business people. That’s because the higher perceived value the customers gets when travelling with MAS compared to Airasia. I wouldn’t mind paying extra dollars just to fly with MAS because I know the value I get is worth the money to spend.
2. Give More
Give more free stuff to them and they will love & respect you more. I know now you might be thinking “What the heck, how am I supposed to make money if I give them everything for no charge”. As a business owner or marketer, we are not doing a charity. Instead we always find ways to make more sales and increase our profit. Everyone loves the free stuff, don’t they? Give them free stuff that is full of value that could help your customers. Let’s talk some marketers that use this strategy. Many of you may hear of Frank Kern the Mass Control guy. Frank Kern is a well-respected marketer in the internet marketing world. That’s because he is known as someone who always delivers good content to his followers. There are times he would send free videos and free pdf lessons so that people could make use of his content into their business. People respected him for that. So do you think he makes a good amount of money? Yes he absolutely does. His business generated millions of dollars each year. Even though he sell high price products literally as $1997, still people are raving to buy his product whenever he come out with new product launch in the marketplace.
3. Be authentic
Create an authentic and real brand. Be transparent to your customers. Don’t just create a dorky brand which does not have any value associated with it. When you are being honest, people do appreciate it. Many people would think that people are cutting down their spending and shifting their buying behavior into buying a brand that have lower price tag. That’s absolutely a myth. A survey in China found out that people are still spending money on their favourite brand even in the recession period because they understand the brand value they are getting. They would rather cut down on alcohol and beer rather than stop buying from their favourite brand.
4. Stay in touch
A good brand always stays in touch with their customers. When customers buy from you, they expect continuous support for their purchases. If you just want to make one time sale, then don’t bother. In every business, it’s crucial to have repetitive customers buying again and again. For example, let’s use Dell’s customer service concept. People buy computers and laptops from Dell are not merely because of the quality of the product but also the support they get after their purchases. Dell is even selling 2 years and 3 years support through phone as an upgrade options by charging premium prices. So why do you think people are willing to pay these premium prices? Customers want reassurance and ease of mind. Sometimes physiological and emotions of customers do play an important key point in their buying decision. So if you are able to trigger the physiological and emotion state in your customer’s brain, they are willing to buy your high priced products or services.