Wednesday, May 27, 2015
Brands Command Time Premiums
Marketers talk about brands commanding price premiums. In fact, the ability to command a price premium is a primary indicator of a brand versus a commodity. Less talked about are time premiums.
Some people have a lot of time but little money. Some people have a lot of money but little time. Some have neither time nor money. And a lucky few of us have both extra time and money.
In calculating brand value, the numerator is the bundle of tangible and intangible benefits delivered by the brand, while the denominator is a combination of the time and money required to to interact with the brand.
Strong brands can command time premiums. When Wegmans or Trader Joe's opens its first store in your area, people flock to those stores, spending a great deal of time there. The same is true of Costco, Bass Pro Shops and a number of other high-demand retail brands. Just as people want to spend time with popular people, they also want to spend time with popular brands. How much of a time premium does your brand command? Do people go out of their way to spend time with it? Do they linger? Do they find any excuse to spend time with the brand again and again?
Time premiums are as much of an indicator of strong brands as price premiums are.