I guess not everyone.
The customer is usually the only person who makes it out with all of their limbs and a steady heart rate.
When debating whether or not to enter in a battle of lower prices with your competition, I strongly encourage you to slap that tank into reverse and head for the hills. A price war is very unforgiving. Not only is your budget zapped to dust, but your brand will take a swift kick to the groin.
Lower prices equal lower quality. I will agree that once in a blue moon, we run across a product or a service that offers both, but in today’s market, it’s rare. A reduction in pricing should never be your go-to weapon for drawing in new and repeat customers.
If you are presented with a competitor who puffs their chest out and attempts to under cut your costs in order to steal business, there are a few great ways to handle their threats without destroying your reputation as the industry leader.
But only if you truly want to drive your competition crazy!
1) Educate your customers. Tell them exactly why your product or service is better, and justify the cost. Openly expose your competition’s process which allows them to undercut your prices.
Are they skipping a critical step to earn an extra buck?
2) Increase the value of your existing products. What can you add to your current offerings to make them more attractive? Faster delivery, included accessories, additional instruction a discount coupon to be used on their return visit, the goal is to slap on some lip gloss and pucker up in front of the customer.
Show them what you’re working with!
3) Crank up the use of testimonials in your marketing strategy. Include video, social media, handwritten notes or anything which has been documented as evidence that you offer a quality product at a fair cost. If you are in the service industry, this tactic could mean life or death! A service where there is no exchange of physical goods for cash is often a tough pill to swallow for potential buyers. You have to provide your audience with proof.
The proof will help justify the cost.
4) Offer a FREE comparison. Run an offer where if the customer brings in the purchase receipt from a competing business, you’ll offer them a FREE sample of your product. For a service based business, try a FREE consultation. The offer lures them in, and that sets the stage for you to compare the quality. Leave the cost out of it! Simply show them one compared to the other. If yours is easily determined as superior, you’ll win yourself a new customer.
Despite the difference in price.
The crème will always rise to the top.
Don’t be intimidated by competitive businesses looking to steal your thunder. This action should excite you, and ignite your passion for defending your spot at the top! Accept their challenge, and begin your investigation.
What makes you better?
Here’s to your future!