How a Premium Pricing Strategy Can Actually Save Your Brand

Why brand equity can help you weather the recession storm

Chess pieces on a chess board.
Chess pieces on a chess board.
Photo by Randy Fath on Unsplash

My Life Lesson

Let me give you my personal experience on the subject. One of my marketing courses at university had the infamous Markstrat simulation, which is a software that allows you to test important marketing theories under real-market conditions. And even better, with zero risks of losing actual money.

Research Driven Formula

Premium Pricing Strategy

The strategy involves tactically pricing your brand’s product higher than your immediate competition. The idea behind this pricing is to cultivate a sense of your product being better in quality than the rest in the market. Your marketing strategy must align and boost this perception as well.

  • Highlight features — identify and highlight the USP of your product across your marketing channels.
  • Financial stability — customers want to know that the company will be around for a long time. It’s part of the value image.
  • Loyal customer incentive — don’t reduce prices, but incentivize your loyal customers by offering a small discount (sometimes, if necessary).

Takeaways

I believe that being able to successfully launch a premium pricing strategy for your brand can be challenging. If done right, it can generate higher profit margins and improved public perceptions of your brand. And in the process, create a loyal fanbase of consumers.

Marketer writing about business, marketing, strategy, and other experiences from life | Find my words on nitishmenon.com

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