Smarter Pricing: How to capture more value in your market

How price can reassure

Price can also be deployed to give a brand positioning of market awareness and customer fairness. Customers may fear that the product they are planning to buy could be on sale elsewhere at a lower price. Price guarantees can reassure customers that they cannot buy for less.

An early example of this commitment comes from the UK department store, John Lewis. Their slogan, ‘Never knowingly undersold’, was coined in the 1920s by John Spedan Lewis, the son of the founder. The word ‘knowingly’ communicates that they endeavour to identify and match competitor prices – the onus is on the retailer. Nevertheless, the guarantee means that if you can show that you could have bought the same thing cheaper elsewhere, they will refund ...