How Brand Lets You Charge More

Why this matters

Pricing power — the ability to charge more than a commodity alternative — is one of the most durable competitive advantages in business, and brand is one of the primary sources of it. Builders who understand this connection can justify brand spend in financial terms that don't rely on 'awareness' metrics.

Try it yourself

1. Pick a product category you know well and identify the price spread between the cheapest and most expensive option. Write a sentence on how much of that spread is explained by functional differences versus brand perception.
2. Survey five buyers (or your existing customers) with this question: 'If our price increased by 20%, would you still buy? Why or why not?' Categorise each response by whether loyalty is brand-driven or feature-driven.
3. Find one public example of a brand that successfully raised prices without losing market share (Apple, LVMH, Patagonia). Write a paragraph on the specific brand signals that gave them permission to do this.

References

• https://hbr.org/2004/09/brands-and-branding