SOME AWESOME SLOGAN OR QUOTE ABOUT THE BOOK GOES ACROSS HERE.

The Danger of Discounts


 

Think back to your teen years, when few things in life mattered more than your favorite band. When a new album would come out, you rushed out to buy it, sometimes waiting in line to get your hands on a copy. When they came to town in concert, it was the same routine.

Did price really matter? Of course not. You simply saved your pennies so you could experience the music you loved.

Even today, when tickets to see a top-tier band can run in the hundreds of dollars, those top-tier bands sell out every show. U2′s recently-completed 360 Tour was the most successful tour of all-time… with an average ticket price of $108 US. Even at that price, every date on the tour sold out. Completely. Every. Single. night.

When you are a top-tier brand, price doesn’t really matter much.

That’s why the iPad can thrive despite an onslaught of $400 tablet computers.

It is why a bottle of Glenfiddich 18 year-old ancient malt is $100 and still outsells the $50 bottles.

It explains how Starbucks can charge $4 for a coffee while Dunkin charges $1.50.

Rock star brands have it made. They never have to discount prices or bicker over nickels and dimes. Because rock star brands are all about creating value, as long as the price they charge reflects that value, customers will line up to pay it.

Unfortunately, most businesses get sucked into the price vortex.  It is sad, really. They advertise their sales and discounts, they make the terrible mistake of using Groupon, and fight to the eventual death against competitors like Walmart that can out-discount them all day long.  Customers who choose you on price alone aren’t loyal to you, they are loyal to the price tag. They’ll be gone as soon as a lower price appears, and you won’t get them back until you discount some more, cutting into your profits and margins. The price vortex sucks.

Don’t go there. If you do, your business might not escape alive.

Brand Like A Rock Star is $14.95, but that hardly matters. It is available now for immediate delivery.

Catch the “Brand Like A Rock Star” presentation in a city near you, or invite me to speak directly to your company or conference.

Join the discussion and click “like” on the Brand Like A Rock Star Facebook page.

 

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