Price means nothing to today’s customers

The concept that customers buy based only on price is a myth and it must be taken seriously by marketers and brands in order to survive and prosper. Price on its own is meaningless and claiming that the price of a product or service is the sole reason for a product or service’s lack of popularity or failure to sell is simply an excuse.

Your prices can add value to your brand

When designing a brand logo, it’s important to recognize that customers make purchasing decisions based on perceived value—essentially, what they receive relative to what they pay. When comparing products or services becomes challenging, customers often default to price, creating an opportunity for brands. This tendency helps explain the perception that price is linked to quality, where a higher price can actually serve as an advantage.

Make purchasing simple and easy

In brand development, it’s crucial to consider how customers assess price and value before adjusting your pricing strategy or engaging in a pricing war. Understand that people generally prefer to conserve energy, meaning they often avoid the mental effort involved in thinking, comparing, and evaluating products, businesses, brands, features, benefits, and prices. To bypass this, customers will opt for shortcuts whenever possible. Therefore, it’s essential to ensure that your brand makes the purchasing or inquiry process as easy and efficient as possible, removing any barriers from the very beginning.

Take care with initial pricing since a customer’s initial perceptions tend to get locked in and hang around to cloud judgement. You never want your customer’s first experience with your brand to be one of a huge discount as they are unlikely to ever pay top dollar or the full price in the future.

Pricing for long-term sustainability

Smart pricing for long term success works in this way – value first, always. Highlight your most expensive product or service first in order to set a higher reference point for your customers. Include an easy-to-compare option that is similar and yet slightly inferior to the product or service you really want to sell. Before ever offering a discount, determine if there are ways that you can maintain your price and add more value or benefits instead.

Customers aren’t buying on price alone! With that in mind it is well and truly time to focus your efforts on ensuring that your customers can make easier, faster and better purchasing decisions.

Liquid Creativity can assist your business with with branding, positioning, pricing and finding ways to highlight the value of your products or services. Contact your local brand agency at Liquid Creativity today.