Why do companies come out with cheaper models of thier product and put a different name on it? Why not just sell your main brand cheaper?
Appliance companies do this all the time. Tire companies too. Goodyear has off brands. Whirlpool has off brands. Etc
So like I said why not just sell the main brand at a cheaper cost
- ?Lv 710 months agoFavourite answer
That's the worm wiggling on the hook that grabs your attention. Not everyone can afford the top end products so companies have their "draws" or less expensive items that draw you in and then they have their star attraction available too if you can afford it.
- 9 months ago
People might be willing to pay $30k for a toyota. But not as many are willing to pay $80k for a toyota. Enter, Lexus. All about perception.
- 10 months ago
It is to create products for different audience. Selling the main brand cheaper means to affect the branding of the company image on the whole and will affect the reputation in the long run
- Anonymous10 months ago
They sell the expensive line to people who are willing to pay the extra money and the others to people who don't want to pay so much. Maximizing revenue.
- What do you think of the answers? You can sign in to give your opinion on the answer.
- SlickterpLv 710 months ago
Marketing, hitting multiple price points increases market share.
- οικοςLv 710 months ago
The idea is to maximize profit. Someone may not need all the bells and whistles of the "main brand". Hence the Ford F150, 250, 350 . . . .
- MichaelLv 710 months ago
Because the point of it all is to make money. If somebody is willing to pay more for your brand name, why wouldn't you let them?