Leading with low prices is anything but smart. Any businesses trying to lower their prices or advertise their low prices to build differentiation for themselves. The first starter consumer has when they see low prices is that you are likely also providing lower quality.
Leading with price is generally a bad idea. Spend your marketing dollars on shouting out your competitive advantage – An advantage that people will be willing to pray premium prices for.
Think about the advantage that Lexus has over Camry; it’s not price it’s something else
Nordstrom over JCPenney;
If you ever plan to lower price… Let that be an exclusive instance, a one time only offer. Make sure that your price reductions are not predictable. This means that don’t be lowering your price on every event or occasion.
Every time someone on your team wants to lower the price because you do not have a well-established position ask this question..
Would you rather they walk away saying “I wish we can afford their offering” or would you rather that they say “the price is so low, I wonder if the offerings are any good?”
Most people in business complain that their customers only care about price… That is true a lot of the times. Customers are very quick to bring up price differences because they do not clearly understand the difference between you and your competition. When they cannot quantify the difference in value they quickly call it out as a difference in price. It’s the same product at a different price. But the moment you can successfully explain how your product is different, there being a difference in price is only natural.
People on also very hesitant to raise prices when they’re competitors products are priced lower than them. The idea is to straddle your competition. Present a product which is similar quality to the competition and a slightly lower price than them. And have your standard product be priced higher than the competition and be very clearly better than the competition. You and your marketing team job is to explain value not to lower price. Marketing teams at lower prices aren’t really staffed with marketing people.