How branding affects your bottom line

Value of brandingA bad brand hurts the bottom line, a good one helps it, and a great one can change the history of your company. But, it’s not easy to put an unassailable dollar figure on the value of a brand.

A brand isn’t tangible and it is very subjective. That makes it very difficult to measure. Interbrand and others make attempts to quantify the value of a brand, but none is perfect. Here are a couple methods to determine the value of branding.


To steal a term from reddit, this is an ELI5 (explain it like I’m five) way of looking at the value of a brand. At an Indianapolis Kroger, Oreos are $3. The house brand is $1.60. There’s your difference. The ingredients and flavor are very similar and many cookie eaters would be hard pressed to tell the difference in a blind taste test. However, Oreos are nearly twice the price because they have a strong brand.

Losing business

It’s more expensive to get a new customer than it is to keep one you already have. That’s obvious. There are dozens of reasons customers leave you for the other guys, but a weak brand is one of them. You’ll have to calculate the cost for your industry or company, and remember to consider both actual dollars and time lost that could be spent elsewhere.

Leonardo DiCaprio’s character in The Departed character quoted Nathaniel Hawthorne, “Families are always rising and falling in America.” The same is true for brands, and if your brand is slipping, it has a real cost in time and money.

Want to see if your brand is adding or subtracting from the value of your business? Try me at or contact us!

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