I had an interesting conversation last week about how much a brand is really worth.
We were discussing discounts and how far different companies are prepared to drop their prices in order to entice new customers.
While many businesses believe that giving away freebies and hugely discounted items will ultimately result in a bigger customer base, others are of the opinion that as soon as a price has been discounted once customers will never want to pay the ticket value again. So, do big discounts de-value a brand, or are they just an unavoidable part of modern day marketing?
I’m sure it’s true that people don’t place as much value on anything that they’re given for free. Giveaways famously end up filling our bins but we’re determined to get the most out of everything that we feel we’ve paid a reasonable amount for.
It seems that every business needs to be able to find the right balance between setting prices that ensure the brand isn’t compromised and competing in this discount-driven market. How you do that, is up to you…