Pricing that doesn’t fit the brand

01Dec11

A few days ago, I saw a really neat leather jacket on the website of a mainstream clothing retailer. It looked like a great product — except for the price. Despite virtually all of the store’s items being priced at $100 or less, the jacket in question was listed at a jaw-dropping $400+.

Even on sale, I couldn’t imagine who would pay that much for anything this particular retailer offered. In short, the pricing was way out of line with how the brand is positioned and the other items they sell.

In a situation like this, you have several options. For example, you can keep the high-priced product under the regular brand umbrella, but add a detailed narrative explaining why it’s so costly (premium materials, limited edition, etc.). Or, you could create a sub-brand to encompass the higher-priced items, and position the sub-brand as being associated with premium offerings. Either way, you’ll help customers to quickly reconcile the disparity in pricing and positioning, and thus free up their minds to make a buying decision based on the product’s merits.



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