Brand Value?

The concept of brand valuation takes us back to the video of Rory Sutherland wherein he talks about intrinsic value.  I would like to bring back that saying that I unearthed from my highschool days that “if you bought it, you can’t say you got ripped off”.  Every time you purchase something, you perceived some value, over and above, no matter how miniscule, above the cost of goods sold.  And this is what brands will do, they are that over the top thing that catapults a pair of flip flops into a life style worth paying good money for. 

All these intangible goods, the same concept of intrinsic value as alluded to by Rory in his video are what brands provide for the consumer.  And even if you and I both purchased a cup of coffee at starbucks for 3 bucks, the $3 that we each parted with is no clear indication of how much we both really value that cup of joe.  The price agreed upon by the buyer and the seller is the floor and the sky really is the limit as to how much each of us can view that cup of coffee.  For others the intrinsic value is ten cents over and above the three bucks they paid for it and anything above the three dollars makes that purchase worthwhile.  Brands provide that over and above factor and it’s the brand that gives you the most sky’s the limit experience is the brand that will stand the test of time and span the globe.

So how then do you put a dollar value on that?  The simple answer is, you can’t.  I may love paying three bucks for a cup of coffee for several reasons.  Perhaps the barista is extra cute and I get a kick out of seeing her everyday.  Perhaps I enjoy the extra zing from Starbucks that I don’t get from D&D, whether or not its truly biological or psychological.  There can be a million things and no exact dollar value that’s why there is but a bevy of different ways of measuring and attempts to put a number or brand value. 

But just because its all but impossible to put a number on it doesn’t mean we shouldn’t try.  I think that there various attempts presented in the paper are good proxies for measuring brand value and each may have their strengths and drawbacks.  But in the end there may be true measure for brand value it does have a value as manifested in the share price of stock as opposed to more tangible measures.  Just because its almost impossible to measure, doesn’t mean that we should stop trying.  Brand value is real.  Its like the dew, its hard to see and its hard to feel, but you know its there.  And in the morning, it’ll manifest itself on leaves and the flowers, just like brand value will manifest itself in the sales of a companies offering.