What Your Price Says About Your Brand

When you think of some of the most popular/trusted/like consumer brands in the US today, you might think of Budweiser, Coke, Amazon, Apple, Walmart, etc.

Some brands are closely linked to price, rather intentionally. To illustrate two of the extremes, let’s use Walmart on the low end and Apple on the high end.

People who know Walmart know they stand for everyday low prices. Their brand is identified with low prices. And for them, that’s a good thing, because it is a part of what makes them so successful. Customers shop at Walmart because they can afford to (in addition to it being convenient).

At the other end of the spectrum we have Apple, who has always taken special care of their brand’s reputation. They offer high-quality, good looking, intuitive technology products. And because of their brand, and the loyalty of most customers, they can command a higher price.

Unlike Walmart, Apple will never specifically tout their higher prices as a part of the marketing. But consumers know that the higher prices they charge are worth it because the brand is so powerful.

Price and brand will always be linked in the minds of consumers. Which makes it hard for companies to change prices or offer new product lines outside of their traditional markets.

It would be difficult for Walmart to suddenly try a higher-price, higher-value strategy. Likewise it wouldn’t make sense for Apple to start slashing prices and try to compete with Dell in the computer market.

Savvy marketers must learn how the pricing strategy they employ sets the stage for how consumers view their brand.