This may seem like an odd question. After all, price is what you pay in return for the brand’s offer. It lives in the accounting realm of margins and profit, adjacent to the typical brand conversations around expression, image and messages.
But price is as much a brand symbol as a logo or colour. Its level determines not only what a consumer can functionally expect from the offer, but also the idea of the brand. Lower priced brands are described as democratic and ‘for all’. Mid-level brands promise to combine quality with value.
The highest prices mean the best of whatever that category is offering – a pay more/get more relationship is expected. But in some high-end categories – like luxury goods – this relationship can flip. Paying more for the same thing is better than paying less, as it signals wealth – and thereby confers status. The fact that many luxury brands are currently suffering sales falls after years of price increases, could be a signal that this idea is eroding.
So when you’re setting brand positioning, think beyond margins and consider the purchaser’s expectations. Because a price isn’t just a cost, it’s an idea.
