How to work with perceived value versus price

There are different ways to work with branding, positioning and visualization of your product. The important part here is to make sure you strategically work with this product in such way, that you “associate” your brand with values you want your product to be associated with. By associating your products with other products (related life style) and have other persons that represent your product you indirectly give a message stating what type of product yours is.

There are different ways to work with these

To work with positioning is to work with what your “brand stands for”. You must associate you with activities that represent what your brand stands for. You must make sure that people interact with your brand and get the experience you want them to associate with.

HOW TO WORK WITH ambassadors and influencers

It is important to associate your product/service with influencers, advocates that “brand” your product without you have to “pay” for it. You give the product, if they like it the will use it, show it in an environment where it is visible.

How to work with Co-Branding

The co-branding strategy has to be based on the win-win situation and the added value for all the brands included. You must find out what it is your “strength” that you can offer which would add value to the other brands.

To work with “Limited edition” is a good way to add value to a Co-branding brand.

The first step is to identify brands that “have the same position as you, on another market and that does not compete with you”. Finding the ideal positioning.

Once you find the correct partner for the cobranding you must work with how to position that brand within your activity (our your activity within their brand). This generates that you do something different, that you get press/blogs where your audience is, to come just because the “limited edition” “co-branding” is there present of the world they are interested in. Therefore, it is important to make sure that the brands are associated.

You must study what values the activity you associate with has.

thinks to keep in mind when you work with prices

  • Make sure you state how many there are in stock if you offer a product for free related to a product
  • Number 5 and 9 are easier number to relate to “good price”. So prices that end in these number tends to be more attractive

UPPSELLING

  • The quality has to be higher
  • The order in which the offer comes
  • When in time it happens

cross selling

  • Offer other related products

how to calculate a price

  • You must take into consideration the minimum margin you have
  • You must take into consideration the competitors prices for the similar product
  • You must take into consideration the perceived value (the items bought individually)

And based on this, you set your price (that is lower than the perceived value)

What is the “gray market”

A parallel market. You sell your product to “traders” that buy and sell (they play with smaller margins). The problem is that you sell the same product but to different prices. You compete with your own brand (because you sell the same product to different prices).

Drawback: you lose control of the brand, of the image, control of the price
Benefits: you sell a great amount

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One thought on “How to work with perceived value versus price

  1. Pingback: Working with strategies | Patricia Polvora's Blog

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