Name your company…a price?

mmind_ds

Naming a product or even your company can be a daunting task. What I am astonished by is when price becomes the name. When you name your company with a price, you eliminate your ability to add future value to your customer and worse yet, the ability to raise prices.

Inevitably you will have to increase your price to stay profitable. After months or even years of establishing your brand–which is based on a price–among your loyal customers, a change in the price of your product will cause confusion.

Take, for example this message that came across our paging system the other day. “5 Buck Pizza is here. Come to the front desk and pay seven dollars to get your 5 Buck Pizza.” We all had a chuckle at how that sounded. But from a marketers perspective, what a challenge that now poses.

5 Buck Pizza is small regional pizza chain in the Intermountain West. But larger companies are not immune to taking this strategy. Take Arby’s 5 for $5 that had been promoted which is now transformed into 5 for $5.95. While it is a different promotion/product offering altogether, the message to the consumer of 5 for some dollar amount has now changed. I suspect it will change in the future.

There are other guidelines you should follow when naming your company or product. And avoiding price is one of those key guidelines. For a review of other guidelines and discussions, these links may be helpful.

Strategic Name development

The New Rules of Naming

Igor Naming Guide

Online Brand Names

Advertisements

Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: