All too often small businesses, CityStir Marketing included, in an effort to get business compromise on price. We offer a huge discount to get business in the hopes that it will give us future business. Guess what it doesn’t work.
Competing on price is a losing proposition. It creates a commodity mentality for your client. For the most part almost everything we sell is a commodity. The one exception to this rule is Service. Service is the differentiator. If you are still trying to compete on price you are doomed to fail. The race for the bottom has no winners. There will always be some company or individual that is willing to do what you do cheaper. It might be the guy down the street or someone half way across the world, but there is always someone willing to do more for less.
What separates you from the competition?
It has to be service. In today’s market place most products can be easily substituted. Rarely is a product so superior that it has no equals. A customer centric approach to marketing is the best way to set your company apart from the competition. The first way to avoid the trap is to rethink what your product or services does. Products and services that solve problems or provide positive feeling rarely get sucked into the commodity trap. If you sell appliances it is tough to compete against the big box stores. However if you position your store as a place where mothers can come to learn about healthy cooking for the entire family – You’ve just taken the stove from an appliance to something more than that, it is an extension of a caring mother giving the best to her family.
Don’t let what others are doing define your business. People will buy solutions to problems at any price. Always position your products and services to be that solution.