Myth Busting: “Adjusting prices will hurt my brand”

http://blog.vendoservices.com/vendo-blog/2016/04/22/myth-busting-adjusting-prices-will-hurt-my-brand

We hear this sometimes from potential clients. It was a concern of ours at the beginning, too. But over the last ten years we’ve adjusted prices billions of times. We haven’t heard a complaint from a consumer yet. So, let’s bust this myth.

Adjusting prices will hurt my brand. No, it won’t. That’s a myth. We’ve been doing it for the biggest brands for years without causing harm.

Why? Because fixed prices are actually a myth. They don’t exist. And we (consumers) seem to be fine with that.

How much is a craft beer? A pizza?

Don’t know? The reason is that these prices change all the time. There is no fixed price.

Craft beer has a happy hour when prices go down. They have limited runs (“saison”) when prices spike up because of high demand for a limited quantity. Ever wonder why craft beer prices are usually written in chalk on a blackboard? Because it’s easy to change them.

Check the flyers you get in your mailbox advertising pizza. They are constantly promoting different prices. The variety is dizzying. Two mediums for $20. Pizza with 5 toppings, extra large for $18. And that’s just for delivery to your house, in your neighborhood. Move a few neighborhoods over and the prices are totally different again.

Prices depend on context. You’ll pay between $35 and $60 for a bottle of Grey Goose at the liquor store in the afternoon. At a table at a nightclub twelve hours later you’ll pay between $500 and $1,000. Same highly branded product, different context = different price.

Here’s the average price and range of prices for normal everyday goods in New York City.

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Here’s the difference between those average prices in New York City and the same products in Louisville, Kentucky.

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Those are offline examples to show how common different prices are. Here’s an online example.

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Do you change your prices? Why not? Follow the lead of the big brands and local retailers that adjust their prices without a negative reaction to their brand. Or stop competing and become irrelevant like Sears in the example above.

Well, this was a twofer. We busted the myth that adjusting prices hurts brands and the opposite myth that fixed prices exist. Woohoo!

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