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Using Price As A Brand Strategy

Price is not what people pay, it's what people value.

Use Pricing Strategy for Brand Differentiation

We’re entering a period of hyper-competitiveness.  Competition forces pricing pressure. More often, price becomes a lever in differentiating your services. For example, you can buy five white T-Shirts for $11, you can buy two Calvin Klein t-shirts for $36.50, or you can buy one Rag & Bone t-shirt for $75. They are all T-shirts, but price signals commodity, value, or status. As a business owner, you can’t do all three. Pick one. You either serve the high-end, the middle, or the price-conscious consumer. In fact, no one is going to pay $75 for a Fruit of the Loom t-shirt.  Hyundai tried it…and then had to spin off Genesis. Remember Ford-Lincoln-Mercury. Mercury doesn’t exist anymore. The only way you can serve multiple tiers is to have multiple brands. For small business owners, that’s a doomed strategy. Watch and learn how to use pricing strategy for your brand differentiation.

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