“Many companies forget that price is a major signaling factor of brand,” said Reilly Newman, founder of branding agency Motif Brands. “A $19.99 strawberry not only intrigues but makes one think that perhaps it does taste better or is farmed more properly. This also benefits other strawberry brands on the shelves by anchoring the price much higher than normal prices.”
Newman views these offerings as potential category catalysts – even if only a few of the ultra-premium items actually sell, their presence elevates the perceived value of everything around them. In some cases, this may be a calculated play by brands or retailers, Newman suggests.
“Some retailers may even place these types of products as decoys to attract foot traffic and anchor their pricing as a grocery brand and perception,” Newman added.
