Fact. A strategy which sees your brand adding value can help you charge more. I often hear businesses talk about cutting costs, driving efficiencies, and undercutting competitors to win customers. But what if I told you the real opportunity lies at the other end of the spectrum? Instead of trimming down, what if you added more? More value. More service. More problem-solving.
It’s a simple principle: People can only buy what you’re offering. If you aren’t offering premium solutions that solve bigger problems, you’re leaving money - and opportunities - on the table.
A recent experience on a business trip brought this lesson home for me in a surprising way. Let me share it with you.
A Hotel Lounge - A Bigger Problem Solved
On a recent business trip to a major city in the UK, I checked into a hotel and was casually informed by the receptionist that I had access to the "Hotel Lounge" - a kind of VIP area with complimentary drinks and food included in my package.
Mind blown.
Now, I’ll admit: I hadn’t heard of this concept before outside of airport lounges, (and TBH I wondered why my stay had been so expensive -i t was a last-minute booking, after all).
That evening, curiosity got the better of me, so I decided to check it out.
Inside the busy luxurious lounge, I met two engineers who were enjoying the relaxed setting over drinks. They invited me to join their conversation, and soon they shared an interesting insight:
They deliberately choose this brand of hotel - one that charges a premium - for a very specific reason.
Their company reimburses their travel expenses, but with most hotels, there’s one problem: receipts. When they order drinks or meals, they need to submit receipts.
That often leads to questions like, “Why did you spend so much?” or even awkward interrogations about how much alcohol they consumed.
This hotel, however, solved that issue. By providing unlimited food and drinks within the package, it removed the need for receipts.
Everyone wins:
The employees enjoy a premium, stress-free experience and unnecessary questions
The company avoids administrative hassle (and also unnecessary questions).
The hotel charges more, delivers more, and creates customer loyalty.
In fact, the engineers told me they actively seek out this specific hotel chain because it solves a problem no one else does.
The Lesson: Add Value to your brand, Solve Bigger Problems
What struck me most about this experience was the mindset shift it represents. Most businesses and brands are focused on how to deliver the minimum viable product at the lowest possible cost. But this hotel took the opposite approach.
By adding a new layer of service, they created a premium product that people are willing to pay more for.
The engineers weren’t paying for a room; they were paying for a solution:
A seamless process with no awkward conversations.
An elevated brand experience that made their work trip enjoyable.
I call this the 'Penthouse Strategy'. I use it with teams to stretch their thinking.
"What could you offer your customers for something that is triple the current price point?" Is the type of question to ask to get people thinking differently and innovating.
I've had client's I've been consulting with come up with amazing new ideas. Concierge services, ultra personalisation, insane convenience added as a value to services, luxury offerings, higher end experiences with a human touch, higher quality solutions and products, partnerships and deep collaboration as part of the process etc etc.
Will a high end offering be for every customer? No. But thats the point.
It positions the brand in a way that most customers look upward (to premium offerings) - not downward (to cheaper offerings).
It helps you build a strategy around uniqueness. It It pushes innovation. It helps brands outmanoeuvre the competition. It rally's them around exciting new visions which drive unbelievable growth.
It's what Apple did with the iPhone. And they destroyed Nokia in the process.
What’s Your brand's “Penthouse Strategy”?
The term “Penthouse Strategy” comes from real estate. If you want to create premium value, you don’t build a bigger ground floor—you build a penthouse. You find ways to go higher, create exclusivity, and add more value for those willing to pay for it.
This concept applies to almost any business or industry.
The key question is this:
What premium solution can you offer that solves a bigger, unmet problem for your customers?
Why It Works
Customers Want Solutions, Not Just Products People are happy to pay more for solutions that make their lives easier, save them time, or reduce hassle. In the case of the engineers, the “free” drinks and food weren’t really free. They were part of a premium solution that solved a very real problem.
Value Drives Loyalty By solving a higher-order problem, the hotel chain created brand loyalty. The engineers didn’t care about cheaper alternatives; they wanted this experience.
A Bigger Problem = Bigger Willingness to Pay If you focus on solving bigger problems, you’re adding bigger value. You are not competing on price. Instead, you’re charging for the value you provide.
How to Create Your Penthouse Strategy: 5 Steps
Here are five actionable steps you can take to identify and implement a “Penthouse Strategy” for your business:
1. Understand Your Customers’ Pain Points
Go beyond the obvious. What are the hidden challenges or frustrations your customers face? Talk to them, observe their behaviours, and look for unmet needs.
Example: The engineers’ pain point wasn’t the hotel room itself; it was the stress of receipts and awkward questions.
2. Think in Terms of Value, Not Cost
Instead of asking, “How can I make this cheaper?” ask, “How can I make this better?” What can you add that creates genuine value?
Example: The hotel added a VIP lounge and premium perks that justified the higher price point.
3. Solve Higher-Order Problems
Identify problems that go beyond the immediate transaction. These are the issues customers might not even articulate but deeply care about.
Example: Removing the need for receipts wasn’t an obvious solution, but it addressed a higher-order problem: trust, time, and ease.
4. Package It for brand Perception
People pay for experiences, not just products. When you offer premium value, package it in a way that feels exclusive and worth the investment.
Example: The hotel created a lounge experience, not just a free food offer. It felt special and elevated.
5. Test, Refine, and Communicate
Once you develop your premium offering, test it, refine it based on feedback, and communicate the value clearly to your customers. Show them how it solves their problems and improves their lives.
Final Thought: Have The Courage to Add More
The most successful businesses, brands and leaders aren’t afraid to add more value and charge for it. They know that customers aren’t looking for the cheapest option; they’re looking for the right solution.
If you’re a business leader with a vision to make a dent in the universe, I challenge you to think bigger:
What unmet problems can you solve?
What premium experiences can you create?
What’s your version of the “penthouse”?
People can only buy what you’re offering. So, offer more. Solve bigger problems. Charge what you’re worth.
It’s not about cost - it’s about value.
*Mic-drop*