Are you under pricing pressures?
There are many business challenges solved or assisted by having a strong strategic brand. One of the more obvious ones is pricing pressures. If you are struggling to charge what your product or service is worth, branding can help…
Branding Before Breakfast Ep 185 Are you under pricing pressures?
Hi everyone. I’m Jodie, I’m the MD at Tiny Hunter. And today I want to chat about one of the business challenges that can be solved by having a strong strategic brand. Now, there are many business challenges that we come across when working with our clients. And a lot of them, even when you wouldn’t expect it can be improved by having a strong brand.
One of the more obvious ones I want to talk about today is if you are struggling to charge what you are worth. We see a lot of businesses that have poured their heart and soul, time, money, and energy into creating a great product or service. But they are not showing their worth. And McKinsey did a study and found that companies that had a strong brand that was aligned with their pricing strategy on average had 20% more revenue than those with a weak brand, which is not hard to imagine. If you are in a bit of a price war, you’re constantly having to look at what your competitors are charging, people are not wanting to pay what you’re asking, then you may have this challenge. The reason brand can help solve this is that you are going to spend time working with professionals to really articulate what makes you meaningfully different, what are those unique attributes, what customers can expect from you that they’re going to know and love beyond price. Once you have defined that, you’re going to make sure that you are reinforcing that in all your messaging and all your touch points.
The important fact about the McKinsey study was not just the strong brand, but that it was aligned with the pricing strategy. If you have an amazing product that is worth a premium but you look budget, then that is never going to work. These things need to be aligned. If you are having challenges right now, charging what you’re worth and you’re getting this pressure pricing. One thing to consider is investing in your brand to help alleviate this problem. And there are many other challenges that can be solved through brand, which we’ll dig into in a future episode.
That’s it from me, it’s time for brekkie.
Written by: Jodie de Vries
Published: May 22, 2024