The following example is a testament to the power of brands.
Head over to your closest Whole Foods and you’ll probably see this Sigg reusable water bottle display:
Each bottle sells for $19.99 or more.
If you head to Walgreens, you will find very similar bottles selling for $3.99. The difference?: the brand is not Sigg.
Keep browsing through the Walgreens aisles and you’ll find these coffee mugs (essentially the same product plus a little bit of insulation) selling for a whopping $17.95:
Why would somebody pay between 350% and 400% more for essentially the same products?
Because of the power of brands…
You spend $19.99 on a Sigg not because you need a water bottle, but because you want to tell the world that you are hip, environmentally conscious and stylish. Similarly, you don’t spend $17.95 on an NC State coffee mug because you want to keep your coffee warm, but because you want to display your college colors with pride.
People are willing to pay to belong to a tribe,
I would be the one buying the $3.99 bottles but I know that I am in the minority. Most people ARE impressed by “brands” and this is a great example of how important branding is. Thanks for sharing. I will gladly re-share
@Julie: You know what? I would also buy the $3.99 bottle, but don’t tell anybody…;)
The thing is, I’m OK with paying a premium for brands, but paying 5 TIMES more for essentially the same thing is too much to me.
Great topic, I think about this 24 /7. Depending on the investment cost into certain item, I do most usually trust the proven names, but too often people choose brands because it reflects an image they’d like others in society to view them in…. Look at the ads for Captain Morgan. How many folks over-spend on their vehicle purchases? Too many I bet. It’s normal to feel judged by what we drive, instead of by where we live, where we work & whom we go home to and no I don’t wear Hanes underwear because Charlie Sheen does, unless it’s on sale