INTELLIGENCE BRIEF:
Pricing isn't just about revenue - it's also a branding decision. It has the potential to reaffirm your brand identity, elevate perception, and establish your business as a category leader. Or, if misaligned with your messaging, it can confuse your audience. (Think how you would feel about a gourmet restaurant charging McDonald's prices.)
Most businesses set prices by comparison or gut instinct - What are others charging? What feels fair? But influential companies don't compete on pricing unless low cost is their core identity (e.g., RyanAir, Walmart). It's unlikely that most companies can compete on low prices alone. The smartest brands use pricing to set themselves apart, signal confidence, and make comparison irrelevant.
Think of companies like Dyson, Peleton, or Glossier - none of whom entered the market with modest pricing.
- Dyson didn't sell vacuums, it sold design-driven engineering at a premium.
- Peleton created a cult following by framing their bikes as a lifestyle revolution. They also charged a premium price to reinforce the idea of transformation. When your customers invest more money in a product or service, they are more likely to be committed to it and thus, more successful.
- Glossier built their brand in a saturated market. They grabbed attention as a new company by using community and a unique tone - as well as confident pricing.
Each of these brands led with distinction, illustrated their value, and priced themselves accordingly.
Not surprisingly, price has one of the highest and fastest impacts on profitability, where even the slightest increase or decrease in pricing can have a drastic impact on profits.
YOUR MOVE:
Forget about what others are charging. Instead ask: What do I want my pricing to say about my brand?
THE PLAYBOOK:
Define your distinction. Look at the specifics of what you do that are different from your competitors. It could be an offering, method of delivery, customer experience, irreverent style, etc. Frame that as a new category or standard. For example, Liquid Death didn't compete with wellness-branded water. It created a whole new category - canned water with a heavy metal vibe. They used their pricing to reinforce the subculture they claimed.
Price for perception. If your offer is transformative, elite, or luxe, mid-tier pricing undercuts your credibility and devalues the product or experience.
Create a signature tier. If you're not comfortable going fully high-tiered in your pricing, develop one offer that's intentionally premium. It serves as an embodiment of your brand's full value and becomes your perception anchor. Your other packages will seem more valuable because of it.
Remove mid-market confusion. Mid-level pricing is often seen as a comfortable way to price your services, but it actually often suggests uncertainty or a lack of confidence. Choose whether you want to be high access (low pricing, based on high volume sales) or high-authority (top-level pricing, elite experience). Then align everything accordingly.
For example:
- Canva is affordable and focuses on gaining a wide audience and a high volume of sales.
- Jo Malone London elevated the world of fragrance and gifting, and used pricing to reinforce sophistication, ritual, and quality.
Educate your audience. Use your website, emails, and client conversations to show the why behind your company. Focus on outcomes, transformation, and distinctiveness, not pricing. Pricing transparency builds trust when the value is clear.
WHY IT WORKS:
Buyers make subconscious value judgements based on price. Your pricing teaches your audience how to see you - as a leader, a luxury, a shortcut, or a risk.
THE FINAL WORD:
Your pricing has the potential to strengthen or weaken your brand. It isn't just about money, it's a narrative. Make sure your pricing is telling a story that is aligned with who you aspire to be (and serve).
