OnDemand WTP Pricing Research

Pricing for Brand Equity – Vodka | PROS

The ability to price higher than your competition comes from having differentiated products. Your products must be better than your competitors’.

When we think of positive differentiation, we usually think of what features we can build that our competitors don’t have (yet.) However, one very powerful “attribute” of a product that can create positive differentiation is brand. If your brand name becomes synonymous with trust and quality in your industry, you have earned the ability to charge more. People pay more for well-known brand names.

For example, take a walk with me down the vodka aisle at your local liquor store. You’ll likely see something very similar to what I’ve seen at my local Beverages and More. Stolichnaya Elit Vodka is priced at $59.99 for 750 ml, Grey Goose Vodka is $26.98 and Nordic Star Vodka costs $7.99 for the same size. Three different brands, three different prices. We assume three different quality levels.

Read complete article here:

Pricing for Brand Equity – Vodka.

Post a Comment

WP-SpamFree by Pole Position Marketing