High Priced Marketing: Rewarding Returns

In 2000, I consulted for the first time, serving the "Song Chuan enterprise company" in Foshan, Guangdong, a food packaging machinery company with annual sales of about 60 million.

At that time, the company's products

Act as

Do not die at high price.

This experience of "high priced marketing" has made my enthusiasm for this marketing method out of control.

In my view, conventional prices are often lacking in brand loyalty compared with high prices.

Regular price and low price are just making products, just like selling ordinary vegetables and radishes.

These do not reflect the interests of differentiation, so there is no scientific research of brand loyalty.

In order to make up for the lack of brand loyalty, some enterprises invest heavily in terminal coverage, terminal interception and terminal promotion. The cost rate is very high and the management is very difficult. This way of operation will make enterprises "indigestion" one day.

In fact, high price is a way of letting profits.

Why do I say so? Because the high price is not only the high retail price, but also the actual reimbursement price of the brand operator's finance department.

The retail price is set high, so we can not give profits to dealers, retailers or terminal salesmen.

At the same time, only if the brand operators have huge margins can they have the space to support the cost of delivering the special value of the brand, so that the brand can become a brand name that consumers recognize.

Channel partners have a reasonable return.

On the contrary, brand operators do not have brand cultivation costs, products are always homogenized, and the interests of channel partners are false and pient.

From Coca-Cola, Nestle, Procter & Gamble, to Wuliangye, Moutai, any brand that gives long-term benefits to the channel partners is priced higher than the same products, and the price difference to the distributor is smaller than that of the similar products.

In addition, let the profit be "Bai + + good heart no good".

The operation of homogenized products, even if they give more profits to dealers, is blind. If brand operators do not make consumers accept high prices, channel partners will sell at a low price, and manufacturers will be allowed to make price wars, and the high prices will soon become chaotic prices and rash prices.

Products will eventually become homogeneous competition.

The "profit making" of channel merchants is only virtual profits and paper riches.

Consumers often are not experts, do not understand the real cost of products, halfway price reduction, but the purchase of consumers have been "cheated" feeling.

It is also said that low prices can be easily earned and easy profits will be made later.

But the low price is always the road of no return. Once the profit is given to the distributor, it will block the success of the brand.

High priced products are brand names, and they must never embark on the path of "short life" because of the short-term pleasure of the channel.

Tap the value of consumers

The industry has such a saying: "conventional prices, consumer satisfaction, lower prices, consumers surprise."

And high price? High price is to let consumers "overjoyed".

In fact, from the satisfaction of consumers to the overjoyed of consumers, the foundation is, of course, "cheap and fine."

Many enterprises are plunged into price war, promotion war and attrition war because they do not understand two words in four words: "cheap and good quality".

Price: the total payment of consumers, not the price.

Thing: that is, the benefit that can be given by the provider, that is, the total value that the purchaser can get, not the goods.

The success of high price marketing is also the highest state of "cheap and good quality".

This is not only a significant reduction in the total expenditure of consumers, the increase of the total value of consumers, but also to bring consumers to a new level.

In order to reduce the total expenditure of consumers, it is not necessary to reduce prices, but can raise prices completely. As long as the increase is less than the decline in the total expenditure of consumers, the total expenditure of consumers will still decrease.

This can improve products and reduce the total cost of consumers.

For example, Hainan Zhong Ye agricultural company, in accordance with the seasonal law of crops, launched integrated products, and the price is higher than the price of a single product. However, farmers can reduce the frequency of drug dispersal and save labor costs. After the advent of the products, the prices of products and incomes increased, the direct monetary expenditure of farmers increased, but the labor cost decreased, and the overall cost decreased.

At the same time, increasing technical services and relieving customers' worries are also a way to reduce the total cost of consumers.

Usually, puffed foods must be packaged immediately after they are produced. Otherwise, they may be dampened and wasted, which will increase the production costs of enterprises. Delays in orders may also affect the competitiveness of the market and sacrifice the profits of enterprises.

Any packaging machinery may fail, for example, the belt is worn and broken, and some parts are broken.

In order to reduce the total cost of customers, Foshan song Chuan machinery has greatly increased the price of products. At the same time, raw materials warehouses are set up in Dongguan, Shantou, Shanghai, Chengdu, Tianjin and other places where food factories are concentrated, and spare machinery is stored, equipped with professional and technical personnel, so as to ensure "2 hours to resume operation".

The total cost of the customer is reduced.

Hainan Zhong Ye high tech company has also chosen the "core terminal" in the "high consumption crop" production area, and distributed experts such as agrochemical and plant protection.

To this end, raising the price of 25%, planting households without worries, will only feel very cost-effective.

In fact, some high-end consumers in Shanghai, Guangzhou and other places have already accepted the service of imported wine, such as high quality wine and professional sommelier.

When the customers entertain guests, the appearance of the bartender increases the personal brand value of the guests. The wine waiter's professional operation of wine enhances the value of the product and the value of drinkers, and consumers are willing to pay for it.

Take McDonald's as an example. Apart from food, McDonald's has more "new tactics".

For example, every year they create new toys and send them not to sell them. McDonald's waitresses miss their customers every day to sing and dance. McDonalds sells reference patterns for children to assemble with French fries. When McDonald's becomes a children's paradise, with these "image interests", the cost of the potato itself and the selling price are becoming more and more important to customers.

In product marketing, once the use of the product changes, the consumer will have new evaluation criteria, and the price gauge in the mind will also sublimate.

For example, Guangdong and Vietnam's River meal can only be used to fill the stomach, so it can only be sold for 5 yuan.

The "24 River powder" is playing an important role in the "exotic atmosphere". The reception of guests not only loses scores, but also conveys the concept of "hard work and time saving". Therefore, the price of the 24 River powder rises to 24 yuan, which saves the cost of "entertaining customers" and reduces the total cost of consumers.

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There will also be a situation where no wine or liquor is served at a high-end banquet.

In response to this demand, Blue Ribbon Companies launched a beer of over 100 yuan each, and many enterprises introduced fresh corn juice of more than 100 yuan per hash and fresh purple sweet potato juice. In fact, the cost of the product itself is still below 5 yuan, but the total value has changed.

There are many more examples: signing contracts with key customers, and using MontBlanc pens to tell the other parties that the Hongkong return agreement, the Middle East armistice agreement and the German truce agreement are all adopted.

Then, each MontBlanc pen sells thousands to hundreds of thousands of yuan. Is it cheap? Banquet leaders, if you take out Wuliangye, even if you don't drink liquor, you will be very happy.

800 yuan to buy a "personal brand image security", is it cost-effective? The same drink, drink 5000 yuan of Lafite at the dinner party, customers feel the pressure, 1 million of the single sign can not be signed, if only drink 300 yuan "local specialty liquor", customers feel it is just a normal reception, courtesy and reciprocity, this single, you can sign or not.

One of my clients, "Beijing Han today", is a "high price marketing" professional company.

One of the best works is to select some tea leaves and bind specific calligraphy, calligraphy and painting and go, so this combination is endowed with the meaning of "never ask for business, drink tea and play chess for the best of the day", especially for "farewell to the second line leader" and "the rich generation leader".

Tea catty is up to 500 thousand yuan per kilogram.

Integrate market resources

Science and technology are not the first productive forces, and the ability to integrate market resources is the primary productive force.

The German mastered the core technology of beer and did not interfere with the beer industry in the United States far beyond Germany. The Germans monopolized all the core technologies of solar energy, which did not prevent Chinese enterprises from buying German technology and driving German enterprises out of Africa and Southeast Asia: Shenzhen's "Shanzhai mobile phones". At the peak, they sold 1 billion 500 million units each year, sweeping across Southeast Asia, the Middle East and Africa, and technology was purchased from European and American enterprises.

Many small and medium distilleries in Sichuan have the quality advantages and cost advantages of liquor. This can not prevent the Yanghe River's blue classics from surpassing Sichuan wineries. The technology of Lanzhou Ramen is worth 1 yuan per bowl even if it has to receive a royalty, and it is a drop in the bucket before every 25 yuan of noodles.

Dealers, retailers, and terminal service providers most want companies to cut prices, send gifts, promote sales, buy gifts and enter fees. However, before consumers approve, they are instinctively rejecting products that are higher than market prices.

When the interests of the brand are beginning to be accepted by the consumers, dealers and restaurants are excited by the price. Customers often raise the following opinion: "if you want to reduce the price to the price of Wuliangye and Moutai at a dealer, you will be willing to pay 1 million."

In short, when you set a high price, you have to prepare yourself for brand promotion, cultivate your own "sense of value", and let consumers willing to pay for the high price.

However, the distributor is only a logistics provider, and the retail terminal is only a "promotion platform":

In addition to these, there is another point that can not be ignored, that is, to compress the profit of "sales link" and expand the space of "marketing links".

The success of Shuijingfang in Guangdong depended on compressing "sales link" expenditure and increasing investment in marketing, such as a series of differentiated benefits to terminals, such as intelligent public relations, training marketing, wine road demonstration, etc.

The recent success of a series of imported wines is also related to the new mode of "exclusive stores + group buying".

The new mode has increased marketing and reduced sales.

The price of a thousand thousand noodles is 5 times higher than that of Lanzhou noodles. A Vietnamese Vietnamese selling 24 beef noodle sells 24 yuan and is about 5 times higher than that of ordinary beef noodle. It also depends on the change of the structure of "sales and marketing" in Taiwan.

There is such a case: East China has a liquor factory, government support, behind the huge market, strong financial strength.

Always make low-end wine.

The boss is a hardworking and hardworking man who still works hard after success.

His team is also very dedicated.

However, under the government's request and the temptation of the market, several high-end shocks have failed.

It is precisely because the value of high-end products and low-end products, corporate culture vary widely, the boss is accustomed to the culture of low-end wine, the most high-end team can tolerate; and any tolerance, its degree is limited, the original team is like Jinggangshan's "Red Army", straw sandals, rifles, strong and loyal, but poor performance.

The new high-end team, like modern missile units, is not necessarily strong enough to surf the Internet and check missile devices, but it wins thousands of miles. They are knowledgeable and independent. Their dependence on the boss is probably lower than that of the "Red Army". If we can not balance the gap between the two teams, we can imagine the crisis brought about by the sales management of the enterprises.

Therefore, the high price can not guarantee success, because the road ahead is diverged. But only by going this way can we embark on the broad road of brand marketing and accomplish a great undertaking.