Your business brand is tied very closely to the value and price of your services whether you realise it or not. Being able to truly understand the importance of this relationship and how to capitalise on it, can make or break a company.
If we take the close bond between value and price to begin with then introduce the brand to the discussion it may become clear as to how important this relationship actually is.
Value and price on the surface seem like the same thing, but they are not. Price is your financial reward for providing the product or service. Value is what your customer believes the product or service is worth to them.
There is a huge disparity here between two words that seem to mean a similar thing, but it gives us some indication as to why value is ultimately in the eye of the beholder and can in turn determine the price of a product or service.
“People spend money where and when they feel good.”
Just take art as an example. I’m sure we have all seen paintings or artwork that look like they were painted by a two year old, however they end up selling for tens of millions of pounds at auction. The only reason someone was willing to pay for that item was the value that the buyer saw in that piece.
Whether the value to them was the fact they genuinely like to collect that type of artwork, or whether they intend to go on to resell it for a profit based on an audience that also sees value in it. Whatever the reason, that buyer paid big money because they saw the value in the product.
On the flip side, if you tried to copy that piece of artwork yourself and sell it, it would be worthless. The reason is that even though you could paint a picture exactly the same, using the same materials, colours and produce the same outcome, unless you are able to add the level of value that the original piece did, no one will pay anything for it.
This additional value that the original art piece brought was a combination of elements that produced this value, usually starting with the artists name, or their ‘brand’. Some say that art is the ultimate in effective branding and marketing as once distilled down, it is only the hype of the artist themselves that makes people sit up and listen, which leads to increased value.
By harnessing the value to price relationship you can be very clear on what price you are able to charge, but also it gives you a visible plan on how to climb the value chain and in turn charge more for the same or similar products.
As the value of your products or services starts to increase to your target audience, so can your price.
You will always however get businesses that pride themselves on using their price as the selling point, for example Mcdonalds, you know that it’s a cheap meal and you are not expecting to eat like you would at the Ritz. But this is what customers go to that restaurant for, a cheap meal, the company has pitched its low price as part of the value that it provides, not necessarily the quality of the food you eat there.
So if improving the value of your products or services to your target market will ultimately lead you to not only retain clients, but also give you the option of increasing your price based on a visible path to increased value how does your brand fit in to the picture?
As we mention in one of our other insight articles ‘Why Branding is so important for your Business’, brand is far more than a logo. A brand represents an essential framework upon which to build positive interactions and experiences for your customers.
A good healthy brand builds clarity, consistency, connection, good communication and commitment. All of these factors are the building blocks of value.
By injecting some time and effort to get your brand in a good position, which means the visual aspects as well as the non-visual and more process drive aspects, you will start to build a positive aura around your company and the products and services it provides.
If your customer sees value in your product and services, coupled with an unrivalled experience with you, supplied by your brand framework, this is the ultimate way to start a chain reaction of increased value and price, led by your brand.
We offer brand audits, that allow you to get a totally impartial take on whether your own brand is fit for purpose and whether it exudes the sort of value you want it to.
So if you’d like one of our creative team to have a chat with you about your own brand or provide a brand audit on your company then please do get in touch with us at email@example.com
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