One of my friends has this great phrase “buy cheap, buy twice”. I got to thinking about it recently when I chose a cheap (well cheaper) brand. A few months later, I inevitably trudged back to the shops to purchase the number one, expensive brand. That phrase has been rattling around my head ever since. It proves a point that I discuss with many of my clients about positioning, brand value and pricing. There’s a good reason why brands hold the number one spot and are ‘reassuringly expensive’.
This product was a boring old vacuum cleaner. And the brand was of course, Dyson. Known for their innovation and five year guarantees, my little cup of joy overflowed using this spanking new vacuum cleaner. Sad, I know. But there’s something so satisfying about parting with the kind of money that would get you a nice European city break if immediately you can see it was money well spent.
I spend most of my time developing marketing strategies, repositioning and rebranding owner-managed businesses. A good chunk of that work is focused on helping my clients understand the position they hold in the minds of the customer, now and where they need to be in the future.
So often my clients compete on price leading them into a financial deadend and de-valuing their product to boot. Much better to be a Dyson and go for that top spot. Make sure you are known for at least one thing that sets you apart from the competition. Ask yourself (and your customers) questions like: Are you the best in the market? What do people feel about your brand? How do you compete on product features, customer experience and style? Would your customers be willing to pay a premium price for your brand and if so, why?
How often will I return to the premium vacuum brand, paying a premium price and avoiding the annoying ‘buy cheap buy twice’? Many, many times. It’s called loyalty and makes Mr Dyson a very rich man.
If you need help repositioning your product so you can charge a premium price, contact us today. And remember don’t let your customers buy cheap, buy twice. Make them buy you.