60% of B2B decision-makers say strong thought leadership makes them willing to pay a premium to work with a company, according to the 2024 Edelman-LinkedIn B2B Thought Leadership Impact Report. Somewhat older research from CEB found only 14% of B2B buyers see enough difference between suppliers to pay for it.
What does it all mean? Buyers pay more for clear market distinction. If your difference isn't clear enough for a buyer to repeat to their boss, the decision often comes down to price.
Why do strong brands hold price?
Brands with a clear competitive distinction can price on value, while brands with ambiguous positioning are forced to price on cost. When buyers can see what makes you distinct, they pay for the value you deliver. When they can't, you're in a race to the bottom.
Why do discounts keep creeping in?
Discounts are a brand tax. Procurement compares you line by line, and sales fills the gap with a discount. "Better" is a claim. "Different" is a reason your buyer can repeat to their boss. If they can't repeat it, they pick the cheaper option.
It usually sounds like this: "We're better. So why are we losing on price?" That isn't a pricing problem. It's an “I can’t tell you apart from everyone else” problem.
Are you being bought like a commodity?
Buyers compare you feature by feature.
Deals mostly close with a discount.
Your team can't name your unique value quickly, or in terms buyers will understand.
If any of these hit home, it's time to revisit your competitive positioning. See how we approach it.
FAQ
How does brand differentiation affect pricing?
When buyers see a meaningful difference, they compare value instead of cost, which gives you room to hold price. Without it, procurement treats you as interchangeable.
We're better than our competitors. Isn't that enough?
Not if buyers can't explain how. "Better" is hard to prove in a procurement review. A specific difference is easier to defend and to pay for.
Where should we start?
Ask your last five lost deals why they chose someone else. If the answer is price, ask what they'd have needed to see to pay more.
Sources: 2024 Edelman-LinkedIn B2B Thought Leadership Impact Report (nearly 3,500 professionals), 60% figure as summarized by Passle; CEB, "From Promotion to Emotion," via Curatti.
