7 Reasons to Dare to Charge More

Categories:Branding, Creativity

Whilst catching up on my reading over the holidays, one article in Monocle magazine stood out to me….

It was a short article but contained this sentence from a Scandanavian entrepreneur

Sandlund

Sometimes in business being daring is about standing up against the 'norm'. The norm established through the manufacturing age of increasing volume through offers and discounts may seem an easy solution, however being a successful brand is not about taking the easy decisions, it is about making the right decision.

One question you might ask about your business is

"Dare we charge the right price for our product – if not, why not?"

You see I believe many businesses daren't charge the right price because they are not differentiated enough from their competitors. The charge towards volume reduces the differentiation.

  1. It moves from specialised to commoditised offers.
  2. It moves the focus from quality to quantity.
  3. It moves focus from product development to production planning.
  4. It moves the focus from delighting the customer to pleasing the buyer at the retailer.
  5. It moves the focus from increasing value of the offer to reducing cost of the product.
  6. It moves the focus of the talent from effectiveness to efficiency.
  7. It moves the focus from brand development to line extension.

So the question is if it is true that "Who Dares Wins"…….what is your brand scared of? The answer to your long time growth lies within those fears and sorting out the internal issues to address those fears…..

Author:
Anna has spent over 20 years as a Board Director at several global brands. She now runs her own company The Engaging Brand which supports business leaders who want to transition to the new social business model. She is also a speaker, writer and radio show presenter on social business, indeed her podcast The Engaging Brand has been nominated 6 years running as Best Business Podcast at the Podcast Awards. She brings an unusual mix of experience to business - she has a 1st Class Law Degree, MBA in marketing and is a qualified Chartered Accountant. This unusual mix means not just explaining the why of being social but how to turn social into a measurable business tactic to grow your bottom line. Her blog www.theengagingbrand.com is recognised as one of the leading UK marketing blogs.

0 Comments

  1. steve@pricingpower.net'
    January 7, 2014 at 1:00 am

    Excellent post Anna. So much management think is about creating large production orientated businesses. This leads to quantity commodity approach to business. But the businesses who go against this approach are the ones who make the money. I don’t necessarily mean the greatest revenue but most definitely the most profit. We always refer to Apple but there are many examples in the small and medium business world.

    The business example that I love is the Moleskine notebook. It will sit on the shelves here in Australia and charge $25-30 for a notebook and beside it will sit a $5 notebook. Now that Moleskine is a public company we get some understanding of their margins and see the profit margin is 67% for the notebooks. I want the Moleskine business.

    Great post Anna.

  2. January 7, 2014 at 5:08 pm

    Ok so the big irony is this….guess what I used to jot down the quote whilst reading the magazine…yep a moleskine!

    I used to argue that we shouldn’t set sales targets based on volume growth…it just led to offers rather than creating value….the sales teams though were really against changing the mechanism. If I was still an FD then I would insist….growth is not defined as volume and never has been…..volume based growth will always lead at some point to a problem when the structure needed to deliver the volume becomes too expensive for the commoditised product. Of course there is a place for offers….but it is a lay-by not a destination!!!

    Happy New Year Steve…hope you are enjoying the sun and (ok I will mention it) the Ashes….

    If you want me to expand for a post for your audience just let me know…..happy to help just like our batsmen were…..

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