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Glossary · Brand

What is Price Premium?

Price premium is a brand's power to charge more than its competitors for a product with the same function. It is the financial return on branding; margin comes directly from this premium.

Detail

The premium comes from trust signals (reviews, warranty, easy returns), perceived quality (packaging, imagery, experience) and the clarity of the positioning. A product sold like a commodity cannot carry a premium. The biggest missed opportunity for manufacturer brands in Turkey is selling the same product under their own brand to create a premium.

Example

A towel made under contract manufacturing sells for 120 TL, while the same towel with a brand and packaging can sell for 240 TL.
FAQ

Common questions on this topic.

How is Price Premium calculated?

The premium comes from trust signals (reviews, warranty, easy returns), perceived quality (packaging, imagery, experience) and the clarity of the positioning. A product sold like a commodity cannot carry a premium. The biggest missed opportunity for manufacturer brands in Turkey is selling the same product under their own brand to create a premium.

Why does Price Premium matter?

The premium comes from trust signals (reviews, warranty, easy returns), perceived quality (packaging, imagery, experience) and the clarity of the positioning. A product sold like a commodity cannot carry a premium. The biggest missed opportunity for manufacturer brands in Turkey is selling the same product under their …

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