How sharp is your pricing strategy?

We've talked many times about pricing strategy but here' s a little twist. 

What does your pricing strategy say about your brand?  Are you like everyone else...$9.99 instead of $10?  Or register for our webinar by May 25th and get $200 off!

How about the early bird discounts at conferences?

Lots of sameness.  Not right or wrong.  Just the same as everyone else.  How could you modify your pricing to reflect one of your brand's values?

Walmart is by far the world's largest retailer, with the promise of the lowest possible prices.  Their current tagline is "Save money.  Live better."

Walmart promises that they'll sell us stuff as cheap as they possibly can.  And they demonstrate that by not using the $9.99 standard price point but instead we'll find items marked $9.83 or $19.67.  Those pinpoint prices speak volumes.  Without saying a word, Walmart is reminding us of their brand.

They're using price as a tangible demonstration of the company's commitment to their brand promise.

Pricing is one of the many tools of brand design and management.  Your strategy should be as much about your brand as it is about your costs of goods or any other operational consideration.

How do you using your pricing strategy to reinforce your brand promise?

Comments

[Karin H.]

Hi Drew

On perceived value mostly. We supply (and install if needed) high quality products with added value through our customer service - keeping in contact with the client and advising him/her as long as he/she needs us for free.
Selling this for low prices in order to get more market share would be the wrong 'brand image'.

Oh, and we try to include the number 7 in any price we set ;-)

Karin H. (Keep It Simple Sweetheart, specially in business)

[Drew McLellan]

Karin,

Tell me more about the #7?

Drew

[Karin H.]

That would be spilling the beans ;-)

Who said every price has to end with a 9 or a 5? £ 6.95 or £ 299.00?

7 is regarded a 'lucky' number and attracts the 'eye' towards it. On our website and ads we state we have 117 different floor types on show instead of saying over 100. It works, definitely - I didn't believe it myself when Richard C first suggested it, but we do get more positive comments on the number of floor types we have than before.

Starting an article with "7 easy steps" will work better than 5 or 10 steps.
It's psychological apparently, don't ask me why - I'm just an entrepreneur not a psychologist ;-)

Now I did spill the beans!

Karin H. (Keep It Simple Sweetheart, specially in business)

[Drew McLellan]

Karin,

Hmm, fascinating. Now, I am right on board with the 117 versus over 100. I had just never thought much about a 7 versus a 6 or a 4, for example.

But it makes sense and it's clearly working...so I'm a believer!

Drew