Smarter Pricing: How to capture more value in your market

4. Trust and reassurance

It is often the lesser-known businesses that give the discount prices in an industry. Conveying trust and brand reassurance takes time, consistent strategy and investment in communications. Thus, where there are a number of price-fighting brands, infrequent buyers are often bewildered by the wealth of choice they face. This gives an opportunity to confident brand leaders.

How it works

In the automotive market, a potential customer could sift through 50 marques, some of which are very competitively priced but are not household names. For a buyer without experience or great interest in car comparisons, there is a short cut: select a known and safe brand. Since 1974, the Volkswagen Golf has been such a safe brand. Its ...