This recent article from Inc.com, “An Alternative to Discounts,” talks about four ways to reduce prices to your customers without cheapening your brand. These strategies can also be very effective for businesses just starting out.

  1. Simplify Your Product — if your customer doesn’t need all the features of your current product in all situations, is there a way to make a simpler (and therefore less costly) version?
  2. Make Distinctions — if there isn’t much obvious difference in features between your lower priced and higher priced versions, you are likely to dilute your brand and sell primarily the lower priced version. Use your packaging, point of sale displays, and marketing messages to make it clear that the higher priced version is a better value (features for price).
  3. Think Small — instead of creating lower-end versions of the same products, create more affordable with the same brand aesthetics as your main line. For example, an upscale bakery that usually does whole cakes could create individual portion deserts. More affodable, but with the same quality and image as their main product line.
  4. Choose a New Name — rather than marketing your new products under your existing brand, establish a new name just for the lower end products. You could have your new brand with a tag line referencing your old brand — in the bakery example, Indulgences brough to you by Supreme Bakers.

There are many ways to provide a lower price point product that will appeal to your existing and new customers without diluting the value proposition of your current brand if you approach the task creatively and with some input from your customer base.

Starting a Business? Start Here. Go Far. LaunchX.com