Priced to Sell
Should your product's price point be its major selling point, too?
Whether your product occupies the lowest-priced rack or the highest-priced stratosphere, the number on the tag says a lot about your brand. It can even be part of your branding--your company sells the cheapest wine or the most expensive shoes, for example--and you market yourself based on that fact. But how do you go about marketing your company as, say, the $10 superstar?
First, choose your price structure with as much care as you write a business plan, says Robert Manasier, brand director for In Focus Brands, a branded business development company in Stony Point, New York. "You can use [price] to enhance or create the brand," he says. Still, make sure you take production costs into account to ensure profitability.