How do premium brands price themselves?

Posted by: Krishna De | Posted on: October 4th, 2006 | 0 Comments | Posted in: Uncategorized

How do premium brands price themselves?

Have you ever seen a sale in your leading department store in the cosmetics counter? 

Do you ever see your local Mercedes delearship with a sale?

I am sure that you will be answering no to both of these questions.

You see premium brands do not discount their services or products.  That does not mean that they do not want to be seen as providing great value for the invesment someone is making when purchasing them.

And they do this by adding value added benefits.

So why is it that I see so many coaches discounting their prices?

Only yesterday I came across a promotion where 20 leading names in coaching had come together to bundle together their products for a whopping 90% off their regular prices.

Now some of the people in the promotion are really good friends but I have to ask what are they doing?

What is this doing to their brand?

Yes I know these are information products they are offering – but why offer 90% off?  Are they really desperate for income – I am guessing not.

Was it that they didn’t know how to say no when someone made the suggestion to them to collaborate in this joint promotion – seeing this as a list building opportunity?  Possibly.

More fundamentally – who are they looking to serve with this promotion?  Who are the people receiving details of the promotion?  My guess is that it is other coaches.

And perhaps there-in lies the answer.

Much as I love coaches and have great friends and colleagues that are coaches, please listen carefully.

Coaches can not afford to pay your fees – or at least the majority can’t. 

I have a great friend who has an amazing business – but guess what – she can not get her list to buy anything from her.  They turn up for the free seminars and download her no cost programmes, but they never invest.

So here are two thoughts:

• if you are marketing to coaches stop – then find a different target market.  You will never get rich or even weathly enough to pay the bills working with coaches – I know I have tried.  They are wonderful people but not great clients.
• if you are considering a promotion, consider what your promotion says about your brand.  And if in doubt take a leaf out of Mercedes books – go for value added programmes rather than lowering your prices.