Cheap as chips or designer label - what does the price of your product or services say to your customer ?


The 4 Ps of marketing (maybe there are 5 now, or maybe even 7 or 9?!)  Anyway, one of the original 4 Ps of marketing is one that is all too often just passed by and not really given the attention it deserves. Yes, I’m talking about Price.

So, there are several approaches to pricing your product or service, you can work out how much it costs to make, add a margin and that’s your price. Or, a better way is to fully understand the price that your customer will pay for your product or service and use that as your price. Also, you need to think about how your product is perceived in the marketplace – are you saying “buy this because its cheaper than my rivals” – or are you saying “buy this because it will make your life better – or happier or, give you a better experience?

Think about a few of our well-know high street brands – what about BMW – the ultimate driving machine – or Pound shops, 99p shops, Home Bargains.  Then think about some of the premium brands that we hear about – Versace, Bentley, Harrods…. 

All these brands have a story to tell their customers and one of the ways they communicate this is using the price – either to denote luxury, to get noticed and chosen over other brands – or to be the cheapest on the high street.

So think about your product or service and decide where it fits in this busy, online marketplace of ours. Are you at the budget end of the market or are you a top class brand – one that people will buy almost regardless of the price? An interesting characteristic of up-market jewellery – the sort that people with great wealth will buy – is that the demand goes up as the price goes up! Here price denotes exclusivity, rarity and that certain something that only a few can afford.

So next time you think about marketing your product or service, or if you are developing your range – give some detailed thought to its PRICE.

#marketing #pricing #value


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