Most executives will tell you that, regardless of the price point of their product or service, their customer considers what they offer a good value.
At one level, that’s obvious. Both the Dollar Store shopper and the Ferrari buyer must believe that the sum total of the benefits they are receiving exceeds the total cost they are incurring–or why else would they each part with their time and money?
While this sort of left brain thinking is important, powerful, enduring brands deliver something more. Brands that offer a deeper, emotional connection are able to transcend the occasional misstep. They are able to drive their business without layering on endless discounts. Their loyalty is earned not bought. Their customers’ testimony is their best advertising.
When a brand is intrinsically valued by the consumer, the entire relationship operates on a different plane.
Alternatively, if the customer fundamentally sees your brand as “a value” you had better have the sharpest price or the most compelling promotion. You also better be the low-cost competitor. Otherwise, the inevitable race to the bottom is likely to end badly.
Oh, and if you’re having a hard time figuring out which you are, that’s an even bigger problem.