Considering the intangible yet complex nature of your business which you now call your brand, how would you evaluate your value? We can no longer use the example of real estate prices especially in gated city communities or what they call the difference between zonal values vis-à-vis fair market values, simply because there is no longer any logic with prices persistently rising while demand is weak compliment of many vacancies and developments in progress. This would be a direct assault to the law of supply and demand.
When it comes to high consumer items like food and beverage sales, salons, alkaline water, dress shops, dress repair, fruits and juices, quick service i.e. like shoe repair, jewelry repair, etc., how is it possible the landlords without added value towards the malls awareness efforts (or advertising and or events) persistently require added percentages on rent when the shops their tenants occupy are made to compete with each other rather be complimentary. The price game towards ones consumers eventually eat up your profits due to competition while percentage participation to stay within the mall drives you out? For example a cola sold at a specific price and if you are over the average selling price your stall will obviously not sell. While you lower your selling prices generating higher gross sales you reduce your profits which obviously cannot be sustaining. You may be number 1 on sales but with no profits left to pay for your operation only hastens your demise. Does this make sense? Who drives us to fall prey to this unconscionable strategy? Is it not the same with the high prices on real estate today considering there are so many buildings rising to the havens with no occupancy (you need only to look up at night to see the darkness these buildings project.) Why pay for a million dollars for a house in Makati’s gated villages (with only 500 square meters to boot) when you can buy the property at the same price in Beverly Hills (and I mean Hollywood?)
Is a brand preferred due… to what? Perception analysis is just that, perception but not necessarily the truth unlike in politics. Fake news is actually valuable so long it promotes your interests and only becomes fake news obviously if not to your advantage.
Consumer preference is a sensitive issue with real time evaluations if done professionally. But who actually evaluates the value of brands in the country? Does a franchise guarantee a value to the brand that is duplicated, why, because of its multiple operations? Possibly, with strength comes power but this may not necessarily be true. At what measures are applicable to help us understand this perception game certain professionals claim they acquire?
To be specific and to provide clues… there is the discipline of a cost-based-brand valuation, then there is the brands financial development, there is also the market-based Brand valuation to make this all sound formal and professional. And the clues are all the above as stated. These clues are already spelled out in this article but should you require assistance you are willing to pay for… call on us at Superbrands for a proper valuation. The next question will obviously be – are you capable of addressing these valuations?