Australian Business Coaching Club Newletter - Can You Make Your Product 'Just a Little Bit Fancy'?

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Can you make your product ‘Just a Little Bit Fancy'?

One well known way to increase your prices is to move your product upmarket. However, this can be a risk and may mean a significant change in your brand position. Perhaps you like your position, but are still looking for a way to increase your prices.

This is the situation McDonalds faced. They had too much invested in their current position and did not want to confuse their current customers by an upmarket move.

Instead, they just went "A Little Bit Fancy" by introducing their Angus Beef burger to complement their current menu. It has ‘premium Angus beef' patty, as opposed to the unidentified ‘meat' that goes into a regular big Mac, and those who are connoisseurs of such things, it is definitely a superior taste and texture from McDonalds regular burgers.

McDonalds have also gone to the trouble of presenting the new burger in a bag designed to look like it might have come from a gourmet deli - it is still just a brown bag, but clearly there has been some real design effort in the packaging.

So we come to price. At our local McDonalds, the Big Mac is $4.35 and the Grand Angus is $8.45, almost double the price of the Big Mac, but still under the magic $10 mark. This is well within the range of their traditional market, but will appeal to those who want to spoil themselves a little. People who would never pay $20 for a burger at a steakhouse- a burger which would, I am sure the aforementioned judges, would rate well above the Grand Angus.

McDonalds have not tried to re-position themselves, just offer something that is within the budget of their current customers with a value they will appreciate and can afford.

Can you offer your customers something ‘A little Bit Fancy' that they will value and can afford?

More ways on how to increase your prices can be found in:

Price: How You Can Charge More Without Losing Sales

Don't be a Price Taker.

All you need to do now is to Empower yourself and take action ...

May Your Business Be - As You Plan It.

Dr Greg Chapman - The Business Brain Surgeon
The Australian Business Coaching Club