We've all heard it: "I'm getting three prices..." or "The most competitive bid will win..." Why? Because your prospective customers have no idea why they should choose your company besides price.
Want to stand out from the crowd and avoid the race to the bottom? Building a strong brand is the answer. Here are 5 ways a strong brand can protect your business from price competition:
Increased Perceived Value Customers are willing to pay more for products or services from a business with a strong brand because they perceive them as being higher quality or more desirable. Take the luxury brand Louis Vuitton, for example. They charge a premium price for their products because they've created a perception of exclusivity and luxury that customers are willing to pay for.
Emotional Connection A strong brand creates an emotional connection with customers that goes beyond the functional benefits of its products or services. When customers feel a sense of loyalty to a brand, they are more likely to pay a premium for its products or services. Apple is a great example of a brand that's built a strong emotional connection with its customers through its brand values, such as innovation, simplicity, and design.
Brand Equity Brand equity is the value that a brand adds to a product beyond its functional benefits. When a business has strong brand equity, it can charge a premium for its products or services. Coca-Cola has built a strong brand over many years, and its brand equity is now worth billions of dollars. They're able to charge a premium for their products because of their strong brand recognition, loyal customer base, and reputation for quality.
Differentiation A strong brand helps a business to differentiate itself from its competitors. When a business has a unique brand identity and value proposition, it can create a perception of exclusivity that makes it less susceptible to price competition. Nike is a great example of a brand that's built a strong identity around its "Just Do It" slogan and its focus on athletic performance.
Premiumization A strong brand can help a business to "premiumize" its products or services by creating a perception of luxury or exclusivity. Starbucks is a great example of a brand that's built a strong reputation for quality and a premium coffeehouse experience.
Investing in brand building can help small and medium sized businesses in Calgary to develop a sustainable competitive advantage that protects them from price competition. At Bizfront, we specialize in helping businesses build strong brands that set them apart from the competition. So, if you're ready to avoid the race to the bottom and achieve long-term success, let's work together to build your brand!