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Industrial Labels

Does better labeling mean higher price points?

Unveiling a dynamic new brand strategy might get executives excited about the prospect of raising prices. With more appealing labeling, those CEOs might think customers may be willing to pay a higher price for the same product. Scott Faber of the Environmental Working Group says: not so fast. 

“Here’s the truth: changing labels has no impact on the price of food. Food companies change their labels all the time to highlight innovations or make new claims,” says Faber in a post on the organization’s blog. “Remember when General Mills changed the Cheerios box to share the good news that its iconic cereal was GMO-free? Did the price change? No.”

Better labeling might not be your company’s ticket to higher price points, but look at it this way: When your brand stands out against its competitors on shelves, you’re more likely to generate interest and inspire loyalty than you were with a bland, outdated label strategy. Rather than looking at labeling and branding as a means to raise your products’ market value, look at them as a way to expand your audience. Even if markup remains the same, your business stands to grow its market share by providing a more appealing visual statement. 

As marketplaces shift, it’s important to keep pricing competitive. A new look doesn’t always justify making a bolder ask of your customers. With a custom label printing strategy, companies can use an industrial label printer to visually state their identities on packaging. By indicating that a product is GMO-free, limited edition, organic or otherwise unique among its competitors, brands can add interest and compel customers to give products a try. Contact us today to learn more about how to take control of your company’s label strategy. 

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