Do you represent the rare businesses where low price or low cost is NOT the point on which you can get the lead? In fact, you have relatively high price – compared to your competitor? For known brands, probably high price is easily justified because the consumer gets the brand name to flaunt.
What if your business has not yet established the brand but still, the price is high. What’s your stand in this case? Do you go about justifying the price or you believe in cashing on it.
Let me explain what I mean. When you ‘justify’ the price, you are in a defensive mode. You take an apologetic stance and try and explain (often unsuccessfully) why you have a high price. You get into feature on feature comparison with your competition and start describing how you are better and therefore the why the high price is justified. You are living in a red ocean in this case. Trying to get head on with competition (and not competition as well).
So what does it mean by ‘cashing on high price’? It means explaining the value which your product or service brings in rather than concentrating on price. It means describing benefits rather than describing features. It means assuring quality. It indirectly also shows the confidence you have in your product. It indirectly also means you choose your customers rather than they choosing you.
What’s your stand point for your business? Do you agree /disagree?
Awesome! The last para is like the crux of branding bible (if that exists :)) Too good Radha! would be a regular reader now, you continue to be a great teacher for me :)ReplyDelete
@bimchum: Thanks for your kind words :)ReplyDelete