My boyfriend has been looking to buy some shoes for a while now. Footlocker hopping every time we’re in the city, he hasn’t been successful yet because of his shoe size. He has been looking for some A-brand sneakers.
Now we got one of the folders at home with sales including Nike’s and other brands. They are selling the Nike sneakers for less than 50 euros and I think it’s a good deal. Boyfriend says it’s a sub line that sells cheaper sneakers and even the word “fake” has been dropped.
In the folder there were sneakers on sale that look almost the same like ones he already owns. He is not interested! Not because he already has similar ones but because he doesn’t know the brand and he thinks they are too cheap. I bet that if you put 100 on top of the stated price he would be interested. He laughed when I suggested the thought…
Even in recession some people still feel too good to be be buying cheaper products even if it is an A-brand product. This shows that pricing is still an important factor in your brand positioning.
When I was in college we were told about a great product that just wouldn’t sell, it was priced at 17,95. It was some horse cleaning kit, which contained everything you would need to do the job, but nobody would buy it. So why?! An agency told them to change their price from 17,95 to 119,95. And guess what!?!!? The sales shot through the roof and they had to create a waiting list because they were out of stock. Before that people thought the product would be no good because it was sold for so little…
Most people buy things for the image that comes with it. Recession might have changed it for a bit, but people still like the image of luxury or wealth (or the believe that higher price means better quality). People with money will keep on spending and if your brand image is strong/wanted enough people will save for it. But keep in mind not to overprice unless you have a solid brand image, product quality and customer service to back it up.
When do you start using pricing as a way of branding? Do you base your price on brand image or actual costs?