Being the cheapest is no way to build a brand – just ask any branding agency. However, there is something that not every branding agency will tell you: That’s how to offer top value whilst still getting top dollar for your products and services.

Even in tough economic times, people aren’t looking for the cheapest options. They want good investments, and want to spend their money knowing that they’re spending it well. In fact, higher prices often work to convince people that they’re making a good decision – along the vein of ‘you get what you pay for.’ Even so, very few people will pass up a savings opportunity on a brand they’ve deemed to be worth their while.

Let’s talk about the psychology of ‘free,’ price bundling, discounts, and more…from the viewpoint of a professional branding agency.

A Branding Agency Weighs in on the Psychology of Discount Pricing

There’s a little something in all of us that perks up when we hear ‘something for nothing.’ If you’ve managed to create a loyal following for your brand, or have in some way convinced your target audience that your brand is worth pursuing, then offering discounts and other pricing incentives could have some positive impact on your brand. However, it could also be either ineffective or could cause detriment to your brand.

Let’s talk coupons. We all know an ‘extreme couponer’ – the person who will buy things just because there’s a coupon, or who will spend money they wouldn’t have spent without the coupon. These people are the minority. There are plenty of statistics available about coupon usage, but the biggest takeaway might be this: the majority of consumers must feel brand loyalty first, before they clip that coupon. In other words, not many people are deciding to purchase brands they’re not familiar with based solely on the existence of a discount coupon.

In conclusion of that point, choose your coupon offerings wisely. They do not build brand loyalty, nor do they enhance brand image. These types of things should exist before the coupon is offered.

There are ways to increase value for customers who are already loyal to your brand. You can bundle a number of items, making sure that the most popular item (the one they’ll buy anyway) is at the forefront of every deal. This will encourage loyal customers to try new, less popular items that they may not have otherwise tried.


Including shipping costs in the price of any item is also a tactic that a branding agency might recommend for adding value. Even if it increases the cost of the item, the perception is ‘something for nothing.’

Your brand might benefit from offering something for free, too. This can be as simple as helpful, impromptu advice or as structured as a free report, free samples, or a free eBook.

Every brand – and every brand’s audience – is unique. Know your ideal clients well, and you’ll start to get a feel for what they will view as valuable. Remember, it’s not about which brand can offer the most for free (or at the lowest cost), it’s about the brand that offers the greatest value in the minds of its target audience members. Will you be that brand? Contact How to Build a Brand, your expert branding agency, to learn how you can build your brand.

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