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PRICING 2: NEVER DISCOUNT
Companies can choose to take a flexible position on pricing or a firm one. Some companies never reduce the price of their goods or services. There are different reasons for this, and it can have different results.
The idea Set a fair price for your products and services. Explain to your customers you do not give discounts because you believe that you’re giving them good value. The luxury luggage manufacturer (turned catwalk fashion brand) Louis Vuitton never give discounts for their handbags. They keep a standard range of classic styles, then create limited editions, which, once sold out, will not be manufactured again. They also run a well funded advertising and PR campaign to make sure that their products are sought after, and are seen on the arms of many an A-list celebrity. At the more affordable end of the market M.A.C cosmetics do the same. So do Lush. The bakery at the end of my street runs on the same basis, hand making daily batches which generally sell out by mid-afternoon. On Saturdays, there is a queue and halfway down the street from Parker’s the Bakers (Established 1912) because customers have learnt that they’ve to be there early to get what they want.
100 GREAT BRANDING IDEAS • 51
100 Great Branding Ideas 14dec.indd 51
12/14/11 11:14 AM
