This week Rory Sutherland on why improving quality, having the confidence to charge more and how creating premium tiers can transform a product’s perceived value.

English sparkling wine offers an interesting lesson for marketers: sometimes the biggest opportunity isn’t selling more, but recognising the value of what you already make.

Speaking about the category’s success, Rory argues that its growth hasn’t simply been about putting up prices and hoping consumers will pay, they “aren’t fools!” Producers first recognised a fundamental commercial reality which was that production was limited. They then invested in improving quality before having the confidence to increase prices.

The thinking was straightforward. If the product could genuinely compete with champagne on quality, why shouldn't it command champagne-level prices?

Rory highlights how offering “good, better and best” options allows brands to appeal to different types of customers. It's a strategy seen across categories, from whisky to luxury goods, where the most expensive options can attract customers precisely because of their premium positioning.

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