Brand Value · Valuation · Component
The price premium
What customers pay for the same thing with the brand on it — the least arguable evidence of brand value that exists.
The deliverable
What it is
Price premium is directly measurable and is the component a sceptical audience accepts. It also understates total brand value, because brands earn through volume and retention as well as price.
The comparison has to be genuinely like for like, which is the difficult part and the reason the measure is used less than it should be.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The comparison basis
What the premium is measured against.
3 attributes: Compared with · Specification differences · Source
LearnThe implication
What the premium implies about total brand value.
3 attributes: Annual premium value · Not included · Confidence
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Measure premium on realised price. Discounting removes most nominal premiums before the customer sees them.
The other components in valuation
The method
Which approach was used, with its inputs and assumptions — because the number is entirely a function of them.
LearnThe valuation
The resulting figure, held with the decision it was produced for — because a valuation with no decision attached is a number nobody uses.
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