Earlier we discussed the value of your company’s brand equity.
Businesses with established brands have more value than those that don’t.
The benefits of a brand are a lot more than just having a recognizable name.
Here are several benefits of a brand as compiled by BrandZ Top 100 Brands Study…
1. It gives you the ability to create real and sustainable competitive advantage.
2. It drives revenue growth by ensuring higher demand and market share.
3. It helps improve margins by commanding premium prices and better supplier terms.
4. It reduces capital requirements by minimizing the costs into new categories.
5. It differentiates your company by overcoming commoditization and reduces overall
Think about it. In normal times suppliers like to “break into” a well known company to boast they are doing business with a well known brand name.
Of course they hope to do more business with that company down the road and grow the account.
Those suppliers often view their deal as much as a Public Relations tool as a sound business deal. To secure a contract they reduce prices or extend terms of payment.
Meantime those branded companies, well known in their targeted trade areas, can charge a little more for their products and services.
Customers know what they are going to get. There is no guess work.
So the branded company wins on both ends. They pay suppliers less and charge customers more.
So how can you measure the strength of your brand?
More next time.