With the same product, good identity allows for higher pricing.

There are two coffee shops next to each other. The same source of beans, the same machine, the same rental price. One shop sells a cup for 45,000 VND, the other sells it for 75,000 VND. Customers line up at the 75,000 VND shop. This is not about the coffee beans. This is about what the eyes process before the mouth tastes.

Perception occurs before tasting

Research by Lindgaard et al., published in the journal Behaviour & Information Technology in 2006, shows that the human brain forms visual judgments within 50 milliseconds. That is the time before customers are aware of what they are looking at. In the F&B industry, this means: paper cups, bottle labels, menu boards, and the colors of the bar counter have done most of the convincing work before the staff even greet the customers.

This is not a subtle psychological effect. It is a specific economic mechanism. When identity is consistent and intentional, customers' brains associate it with the signal: the person who created this cares about every detail. From that, they infer: the product inside is also crafted with care. A higher price becomes reasonable, not something that needs explaining.

Purposeful differentiation, not differentiation for fun.

Many F&B brands confuse "looking different" with "meaningfully different." A strange neon color, a quirky font, a hand-drawn logo: all can look different yet fail to convey anything. Customers glance, don’t understand, and move on.

Purposeful differentiation is when every visual choice reflects a clear stance on segmentation and commitment. A coffee brand chooses earthy tones, images from the growing region, and recycled packaging: not because it looks good, but because it speaks to those willing to pay more for transparency. A milk tea brand opts for bright colors, sharp typography, and selfie-friendly packaging: not because it’s trendy, but because it connects with social media users and friend communities.

A brand is not a logo. A brand is the perception in the customer's gut about a product, service, or company.

Marty Neumeier, The Brand Gap

When identity speaks the right language of the target segment, higher prices do not need to be defended. They are received as a natural consequence of a choice that has been clarified.

The value signals that customers cannot articulate.

F&B customers do not sit and analyze logos before ordering. But their brains are continuously processing: is this cup thick or thin, is the label sharp or blurred, are the colors consistent or patchy, is the text readable or just decorative? Each small signal adds to an invisible profile in the customer's mind: is this worth the money or not.

This is why brands like Starbucks, Gong Cha, or Phúc Long can price their products higher than similar offerings in the market: not because they sell larger cups, but because the entire system of signals, from colors to packaging to staff uniforms, continuously affirms a consistent commitment. Customers do not articulate this in words. They simply feel that this is a place worth spending money.

When identity erodes pricing power.

The opposite is also true, and often more painful. A good product with cheap identity will be valued based on its identity, not its actual quality. Customers see dull packaging, misaligned logos, and inconsistent colors across touchpoints: their brains immediately conclude that this is a brand that hasn’t invested, and the product inside is likely similar. Even if it tastes better, they will bargain or go elsewhere.

The Vietnamese F&B industry saw over 50,000 restaurants close in the first half of 2025 according to iPOS × Nestlé data. Many of those had decent products. What they lacked was not the formula, but a strong enough signaling system to make customers stop, choose them over their neighbors, and return next time.

Identity erodes pricing power in many ways. Sometimes it is obvious: outdated packaging while competitors have refreshed theirs. Other times it is subtle: social media images that do not match the in-store experience, leading to misaligned expectations and customer disappointment from the first visit.

Consistent identity is an accumulation mechanism, not a one-time project.

Byron Sharp in How Brands Grow points out that distinctive brand assets only create value when consistently repeated over time. Each time a customer encounters a familiar signal, the connection in their brain between that signal and your brand is reinforced. This is the mechanism of memory, not aesthetics.

In the practical operation of F&B, this means: the colors on paper cups must match the colors on the sign, match the colors on social media posts, and match the colors on printed menus. If each channel has a different style due to a lack of a core identity or because printed at different workshops with inconsistent colors, the brand cannot accumulate anything even if customers encounter you daily.

This is also why the cost of creating a structured brand identity is not a one-time design expense. It is the cost of building the identity infrastructure so that every subsequent touchpoint operates correctly. An F&B brand expanding its chain without this infrastructure will find each new location to be a budget-burning restart.

Practical question: what is your system communicating?

You don’t need to hire an expert to ask this question. Stand in front of the store or hold the product and look at it as a first-time customer. Ask: if a stranger looks at this for three seconds, what segment would they place it in, and how much would they be willing to pay?

If the answer is lower than the price you want to sell, that gap is not due to picky customers. It is the gap between what the identity is communicating and what you want to be valued at. Closing that gap is the responsibility of brand design, not promotions or advertising.

High pricing does not need justification when the entire signaling system communicates consistently with the right audience. At that point, 75,000 VND for a cup is not something that needs explaining. It is self-evident.