Falling sales? Raise your prices!

In the race to win customers, businesses can squeeze the life out of themselves by cutting prices.

If your target audience is in the mid-market or economy segment,
falling sales and a new tax system
can add up to a crisis.

But who knows how to profit from change,
including in a crisis?
The premium segment.
Perhaps that is one reason those businesses reached it. 

For many of my clients
working in mid-market B2C,
I now recommend developing
a premium product range.

That does not mean hearing a fragment of an idea, failing to explore it and simply multiplying the price by five in the name of repositioning,
instead of improving the substance of the offer and the service. 

For example:
Yesterday our product cost 5,000;
today we have called ourselves “premium”
and want 25,000. 

The starting point is to look at the target audience
with fresh eyes and consider
their values and goals.
Are they businesspeople for whom every minute counts?
Do they place particular value on looking after their health?
Perhaps they value comfort?

Moving from the general > to the specific,
for example,
might they be people who need more personal space?

People who
travel in their own vehicles,
sleep in separate bedrooms
and work in private offices.

Knowledge of neuropsychology helps me understand this audience:
in particular,

their sense of personal space expands over time, and they are willing to pay more so that
nobody nearby smells of garlic,
sweats
or breathes noisily.

Their personal space is wider than other people's,
and when that distance is reduced,
they experience physical discomfort, almost literally on their skin. 

This question reaches beyond marketing
into psychology and neuropsychology. That is why I offer more than a conventional marketer, bringing together
marketing knowledge from Saint Petersburg State University and Stockholm School of Economics,
and psychology from Massachusetts University of Psychology.

I understand what your target audience
- thinks,
- feels,
- wants,

and how to make your message heard
through appropriate brand positioning.

Working in the premium segment
is often more attractive in terms of margins.
Many elements of a premium product
come from service.

This is particularly true of service businesses.
Service often costs very little to provide but is highly valued by the customer.

EXAMPLE:
Consider a Russian Railways business-class carriage,
which, incidentally, is always
fully occupied in my personal experience.

What makes it different?

- Seat size: this is a real difference, with two seats sold in the space normally occupied by three;
- Breakfast: I am sure it costs very little;
- A blanket and pillow: also a small cost;
- Service: additional staff costs;
- A smile and politeness: free, provided you have communicated this brand value to staff and HR recruits friendly people; )
- The captain — or rather, the train manager — personally approaches passengers whose body language is open and asks how their journey is going and whether they are enjoying it.

Now consider this:
- Wi-Fi on the journey gives many passengers the opportunity to stay connected and work. Given the value of their working time, they will recognise the benefit and
happily pay more.

Today, I hope you will take a fresh look at the opportunities for your
business and find inspiration
for growth and development.

Your mentor in
company branding
and personal branding for experts and leaders,
Maria Zavyalova.