Many branding strategies focus on the importance of consistency. With a single identity, brand-building is more likely to succeed. There is another thing about branding, however, that requires a lot of consistency: pricing. Keeping product prices as stable as possible across all customer encounters will help keep the trust and market positioning every business values, after all. Here are reasons why inconsistent pricing puts off customers:
Alienates Your Customers
Imagine having to pay more for something you bought for a fraction of the cost at another store. When prices for the same product vary from store to store, the product becomes unpredictable, making it harder for your customers to be loyal. Minimum Agreed Price (MAP) and other pricing policies help both makers and stores maintain uniformity.
Hard on Your Partners
Partner stores and stockists who bring your products to the market also depend on the stability of your product prices. They rely on you for pricing stability. This way, they can make sure no competing stores sell your products for less. Moreover, if you keep giving discounts and doing price drops, stores will not be as happy carrying your brand.
Price Wars is not a Game to Play
Trying to win customers over by being the cheapest product on the rack is an unadvisable marketing strategy. In fact, many customers take it as a sign of inferior quality. As cheap is not always the best way to go, be smarter about pricing your products instead. Focus on your product’s unique qualities and price them according to your expenses. SMEs, with no complex supply systems, only stand to lose out when they try to play the price game with bigger, more established industry giants.
Negative Effects on the Brand
A constantly fluctuating price is a big red flag for customers. Price drops can be a sign that a product is not as useful as originally thought. Price hikes, on the other hand, turn customers away towards the competition. When done frequently, price changes can definitely seem like cheating customers. No one will pay $20 for something they will probably get for $10 in a few days.
Keeping a pricing system that is stable is essential to any business. It plays a crucial role in building trust among customers. In addition, a stable price will keep your products secure from any pricing game that competitors might decide to play. Furthermore, it bills your product as high performing.