Every money transaction is actually a value transaction. We pay an amount to get a product, service or whatever. And that thing we just paid for has a certain value assigned to it. And I’m not talking about the price tag here. There’s a value assigned to everything in our minds. If we think the value of a thing is higher than the value of the amount we have to pay, then it’s worth it.
If a meal costing $10 is going to satisfy my hunger, it’s worth it. If a product solves a problem that’s more valuable to me than how much we need to pay for it, we’ll buy it.
But, the product itself is not the only way to create value.
And since we’re emotional beings, there are things we value beyond a tangible item. We value things like love, security, happiness, freedom, recognition, and belonging.
Can you guess which one is the most important intangible value a brand can offer?
It’s belonging.
You may think otherwise or agree with me. But let’s take a look…
We all have smartphones. Did you buy yours with the sole purpose of having the best product possible (tangible value)? Or were there other factors that have affected your decision?
Or what about your shoes? Did you buy that brand of shoes just because they make the best shoes?
We can expand these examples to pretty much everything we own and use. But I’m guessing you already got the point.
The products we buy serve us with their functionality. But we buy “brands” to define ourselves. To define and show to the world what kind of a person we are, and the values we stand for.
So, back to the point…
If you’re a brand, your product shouldn’t be the only value you offer. Because products can be replicated. Or they can be made better. When that happens, you’ll likely lose the game or lose a good chunk of your market share. And that’s the best case. If your product is the only value you offer, the next person who offers a very similar product for cheaper, guess which one people will choose?
We both know the answer.
But, if your brand can offer something beyond the product, it doesn’t only give you an edge as a better option but frees you to play with the price tag. Meaning, you can sell it for more.
And how do you do that?
Well, that’s the million dollar question.
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