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Published on: June 29, 2023
Video Positioning

Positioning Strategies That Protect Margins Under Price Pressure

Summary

Under price pressure, you find out whether your positioning absorbs price comparisons or invites them. It clarifies if leadership choices and proof actually guide pricing. The shift is to turn brand positioning into a decision system that anchors outcomes and walk-aways. From there, commercial calls are made with conviction again.



Watch The Video

In this video, Dipendra Mistry, CSO & Managing Partner, explores how positioning protects margins in times of price pressure.


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Our Perspective

What this means for leaders navigating growth, change or transformation in their organisation.

The Real Margin Risk

When price pressure bites, the reflex is to discount. That treats a symptom, not the condition. The deeper risk is allowing your offer to look interchangeable, which invites buyers to make price the sorting mechanism. The moment you collapse into a commodity comparison set, margin erodes twice: first in the deal, then in the brand’s perceived value. The alternative is to set a clear positioning stake that reframes what you’re compared against and anchors outcomes, not features. Nielsen reports that brands priced above the market average exhibit about three times lower price elasticity than peers, signalling reduced sensitivity when value is credibly framed.

Compete On Outcomes

If you want pricing power, move the battleground. Compete on the size of the problem you reliably solve, the cost you remove, and the risk you de‑risk. Most organisations we work with underestimate how specific the outcome narrative must be to change the comparison set.

  • Define the problem you own and who pays for it internally; price against that pain.
  • Quantify before-and-after states using metrics the buyer already reports.
  • Replace feature talk with proof artefacts: baselines, time-to-value, and variance reduced.

Pricing As Story Discipline

Pricing isn’t a spreadsheet event; it’s the public expression of your position. Architecture, fences, and walkaways make the story real in the hands of product, sales, and finance. Bain & Company notes that 55% of companies have matched or beaten input-cost rises, and those confident in raising prices expect a 5–11 percentage‑point margin performance premium—confidence that rests on clear trade-offs and evidence.

  • Establish a pricing floor linked to measurable outcomes, not effort.
  • Use tier logic that mirrors buyer risk profiles, with explicit exclusions.
  • Equip teams with a “proof ladder”: case deltas, references, and diagnostic insights.
  • Pre‑agree deal boundaries and escalation rules so discounts aren’t a first resort.

Leading Under Pressure

Leadership’s job is to harden the edges: decide the market space you own, codify the proof, and align go-to-market behaviours to hold the line. That clarity shortens cycles, reduces negotiation noise, and turns pricing from a reaction into a signal of confidence.

  • Choose a narrow territory and name what you won’t do.
  • Make finance, product, and sales rehearse the same outcome narrative.
  • Track “wins at list” as a board‑level indicator of brand strength.

As markets get louder, the organisations that frame value, prove it, and price with conviction will see margin protection compound into strategic optionality.

Sources:

Further Resources

  1. Aligning Brand Positioning: Strategies for Modern Growth
  2. Positioning over USP: The Strategic Choice
  3. Positioning Strategy: Choose Your Territory with Confidence


Every organisation hits brand questions it can’t solve alone — if you’d like an outside perspective, we’re here. Let’s talk.

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Video Positioning