In today’s economy, our society has become increasingly price sensitive. You may notice that even common consumer products now require longer purchasing cycles. The power of the Internet allows us to research all of our options online and compare offers before making a purchasing decision. This trend is not only affecting the business-to-consumer market, but the business-to-business market as well.
Your brand is what sets you apart from your competition, above and beyond the price. Think of why you may choose to purchase a higher priced item instead of a comparable lower priced item. In most cases, you are willing to pay the higher price because you believe that you’re getting a higher quality product. Now some people will diligently do their homework – researching the product details, reading product reviews, or checking Consumer Reports – but there are also many people who will make their purchasing decision based on the company name (or brand) alone.
During a recession it is these strong brands that survive. The weaker brands end up in foolish price wars with their competitors and not only lose sales dollars, but also further deteriorate their brands. Some large companies have tried offering significant discounts during the recession and are now seeing that consumers are unwilling to pay full price for their products.
Remember: it is easy for your competition to match your price, but they cannot match your brand.