I hold my dad responsible for my love for the Mercedes-Benz AG brand. My love and appreciation started from childhood and so much has gone into influencing the value I place on my experience in the drivers seat. Bar none, it is the number one auto brand for me.
Years ago we had a second round market launch in Market and our strategy was centered around pricing. We were going to focus on volume and make the POS price point the lowest in market. That launch flopped. Know why?
Businesses did not trust that something so cheap was good enough to manage their very valuable and precious business. We failed to factor in the value of the POS to the business owner. We went back to the drawing board and our magic (turning point) price ended up being 10 times what we initially offered!
Your market positioning and pricing should factor in the value to your addressable market as a core consideration. What do you truly mean to your market? How valuable are you to them? Not knowing this will cause you to either devalue or over value your product in market.
Take time to understand how valuable you are to your addressable market. There is a difference between “being affordable” and “being cheap”.
Stop and think about your value…
