I’m sure you’ve been told before that your brand is so much more than just a logo or creative color scheme. In addition to communicating to potential clients what your company is all about – including your mission, values, style, creativity, and more – your brand also conveys your value.
Since value is so closely associated with price, you branding and pricing must be in alignment with one another. If your brand and pricing don’t match up and communicate the same level of value, your potential clients won’t buy into what you’re selling.
Let’s explore some examples of companies with different price points and very different brands.
First, you’ve undoubtedly been to Starbucks at least once in your lifetime and experienced their quality beverages in their relaxing atmosphere. You also most likely wouldn’t blink at paying almost $4 for a mid-size latte because the brand is closely aligned with their pricing.
However, let’s say one day you decided to try out the dated-looking coffee shop located in the strip mall with a vinyl sign in the window that simply states “HOT COFFEE.” When you arrived, you noticed that the fluorescent-lit shop smelled musty, the furnishings were mismatched and looked uncomfortable, and the music playing in the background was an odd mix of loud 80’s music. You also notice that their latte is priced at $4. While the coffee could very well taste amazing, chances are you wouldn’t stick around long enough to find that out.
When you visit a well-branded establishment known for its quality, attention to detail, soothing ambiance, and socially responsible ethics, you are willing to pay a higher price because the brand and pricing are in alignment. If the branding is unclear or gives any indication of lack of quality, the value of the product or service will be affected and it will be much more difficult to charge a premium price.
Next, let’s look at two well-known hotel brands. The Four Seasons is known as one of the leading luxury hotel brands with its exceptional amenities and focus on the customer experience. With a brand that exudes high style and trust, the hotel’s clientele naturally don’t even blink at the high prices.
While Holiday Inn Express has recently re-branded with a more modern face-lift, their brand focuses on communicating dependability and friendly service to the “express” traveler with limited amenities and a simple style (and an affordable price to match).
In both examples, the brand is very much aligned with the price point, which is why both companies are so successful. If Holiday Inn Express tried to charge the same rates as The Four Seasons, they would go out of business. And if The Four Seasons suddenly slashed their prices to the level of Holiday Inn Express, they would cause a lot of skepticism and mistrust with their customers.
Your pricing is an extension of your brand and both must communicate the same level of value. When your brand and pricing strategy work together, you can attract more of your ideal clients and those willing to pay what you’re worth.
This blog post is part five of the Impactful Brand Series – an eleven-part series to help you build an impactful brand in 2018. If you don’t want to miss out on this series, be sure you are on my email list to be notified each week when a new piece in the series is released.
Next up in the series: How Creating a Company Culture Can Impact Your Brand (written by an HR Partner for Creative Entrepreneurs).
If you’re ready to build an impactful brand in 2018, get in touch with me and let’s make some magic happen!
Kristin Kaplan is an entrepreneur, wife, mother of three, and extreme list maker. A northerner by way of Los Angeles, she is now happily settled in Nashville, Tennessee and loves everything about living in Music City. After founding Stunning Events in 2007 and spending 10 years planning fresh, fun, wedding celebrations, she now teaches, mentors, and coaches creative entrepreneurs to live a life of purpose by building a solid business foundation. She is the writer and creator of The Pricing Workbook, a pricing guide for creative business owners and the co-founder, along with Ginny Krauss, of The Wedding Business Bosses community and The Wedding Business Academy, a 6-month group coaching program for wedding industry creatives. You can see more from Kristin on Instagram, Twitter, and Facebook.
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