price for profit
But you aren’t Harley Davidson.
So, let’s try to work out how you can determine your Brand Value for your company. There are some key concepts to understand.
Price Elasticity Simply put, if you want to be able to obtain premium pricing, this is the key to understand where you fit in the marketplace. When customers demand for your work goes up, even when prices increase, your Brand enjoys a favorable Price Elasticity .
What you are creating hopefully resonates with your audience. So much in fact, that they will keep buying even after you raise prices.
A great way to determine your place in the market is to use comparisons, market surveys, and feedback from your customers. Remember, you aren’t selling ink on cotton. You are selling memories. You are selling attitudes about a lifestyle. Your creativity. Your problem solving skills.
Whatever the emotional connection is to your work is your “Extra”.
Premium Pricing Advantage When you constantly have high Price Elasticity , you can demand a premium in the marketplace. This is simply how much people are willing to pay above what others might be charging for similar work. The difference between your Brand and a lesser-known, but comparable brand is your Brand Value . If you multiply this difference in price by your total sales volume, you can calculate your Brand’s Market Position . So, What Does This Mean? For example, let’s say you are a very well known designer. More than just any graphic artist out there, you have a following. As a business idea, you start a t-shirt company. The goal is to bring your creative flair, that already is extremely popular to the marketplace
49
© 2018 Marshall atkinson consulting, llc
Made with FlippingBook - Online catalogs