Are You Competing on Price or Value?

How does branding increase value (more value than it’s cost) and what does it mean to increase value rather than increase prices?

Smart brands dont compete on price they compete on value.

Lowering your price only attracts consumers who buy products or services based on price. And simply raising your prices without changing the value won’t do you any favours either, the people who were buying just for price won’t be buying any more and without any value… well you’re left with no customers.

So how can branding add that value to your business?

If I roll back to where branding started back in 1820 when trade goods were being imported, producers began branding crates to distinguish them from competitors. The crates that had been branded had a perceived higher value by customers which in turn allowed them to command higher prices. Having a brand became valuable, more desirable.

The real value of a brand lies at the emotional level and what it says about the customer. Does anyone really believe they own an iPhone because it works better? It offers the promise of being the most innovative, best designed, and let’s face it, coolest brand we can own (and we are willing to pay eye watering amounts for it).

In the same way, with your business you can control the narrative through the use of branding, by adding more value and in turn making it more desirable, but it’s not a case of just having good visuals it’s about all of the brand touch points.

Brand visuals add in a layer of trust and helps build name recognition. When people recognise you through visuals, it creates a sense of familiarity which makes them comfortable.

A defined brand experience brings consistency. Consistency allows your brand to be seen as stable and professional. A consistent and positive brand experience will turn your customers into loyal ones. Invested customers are the driving force behind any good brand.

A well thought out brand image allows you to connect with the customers or clients you want. What do you want your customers to say about you? Customers buy brands that promote a certain image or lifestyle that align with their values and vision. Every human has a desire to “belong” to something and brands that know their audience inside out are able to make their brand something customers want to belong to.

By promising quality, consistency, and image, branding has the power to add increased value and profits to your business.

However you must deliver on the promises you make in every interaction with the customer and meet their expectations. (Bonus points for going over and above).

Questions to ask yourself today:

1. Who will be using your product or service?
2. What pain points do your customers have that need to be addressed?
3. How does the competition price and sell it’s product or service?
4. How are you different and better? What value do *you* add?

Post inspired by the quote: “Design adds value faster than it adds costs.” — Thomas C. Gale. This famous quote from automobile designer Thomas C. Gale says that investing in design is a very worthwhile endeavour. If you’d like to know more about my packages get in touch here.