The Price Architecture Framework
The Concept
Price architecture is not about maximising margin on each piece. It is about building a price ladder that allows buyers to build a coherent floor from your range and allows customers to step up over time. The three-tier principle: entry, mid, hero.
Why the gaps between tiers matter as much as the prices themselves. A large gap between entry and mid means buyers cannot step customers through the range. A gap between mid and hero means the range lacks a commercial bridge between its volume pieces and its statement pieces. Price architecture is a strategic decision that happens before any garment is priced individually.
In Practice
Two Premium Contemporary brands with the same average order value. Brand A has 3 price points: £195, £890, £1,200. The gap between entry and mid is too large for buyers to build a stepwise floor assortment. Brand B has 5 price points: £195, £320, £450, £690, £890. Buyers can step customers up the price ladder. Brand B gets placed more consistently despite identical average prices. The difference is architecture, not pricing.
Your Exercise
Open Range Health. Add your current range with prices. Look at the price architecture visualisation. Are your price points evenly distributed or are there gaps between tiers?
Open Range Health