If you can’t be the cheapest on the market, there is no strategic advantage of being “second cheapest.”
What it basically means is that it doesn’t make sense for you to have a little cheaper price than your competitors because you will not win that way. I’m pretty sure if you’re a business owner or an entrepreneur, you are always thinking about how should you price your services or products, right? If so, how should you price your products or services?
A lot of businesses are trying to copy their competitors and be just a little more expensive or just a little cheaper. Unless you’re the Walmart in your industry, there is really no strategic advantage of being the second cheapest because as we all know, Walmart has the cheapest prices in comparison to all of its competitors.
So what can you do instead?
I’m pretty sure you’re thinking now, “Alex, but how am I going to get clients if will be the most expensive? What you can do instead of playing with pricing, you can create an offer. An irresistible offer that your clients or your potential clients will want to take. Because of the offers your clients will become your raving fans.
Look at your competitors, what they propose and what kind of prices they have. And probably you already know if you’ve been in business for a while, you know which company sells what and at which price point. If you don’t know it, do your research.
Take our core product and create an offer. You’ll add few bonuses to that product. So whenever a potential client will start shopping around and they know that they need the product or service. They will check out your product, your company, they might check out your competitors. And just because you have an irresistible offer, they’ll choose you.
So let’s take this as an example, when somebody has just a product and you have exactly the same product but on top of that, when you have bonuses around that product, of course the customer will choose you because you give more value.
So basically you wouldn’t compete on price anymore because of the value you provide and to a lot of people still don’t get it.
In my case I’m not the most expensive on the market but I’m also now the second cheapest on the market. There’s a whole strategy on how to create an irresistible offer. So guys, if you are still competing on the price, start creating offers and you will see a huge difference.
If you need my help with offer creation book a call with me and we’ll go over it together.
2 replies on “Do You Compete on Price or Value?”
I enjoy what you guys are up too. Such clever work and reporting!
Keep up the good works guys I’ve incorporated you
guys to my blogroll.
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