Official Blog of Infinitypreneur.com – Learn It. Do It. Profit
Episode #77 – You Be You But Never Compete on Price!
It’s time to set yourself apart in the marketplace, but don’t do it on price!!!
It’s OK to sell the same product or service, in fact, that’s what happens. Let’s look at this from the consumer side…
I mean when you’re shopping, don’t you find a product and then head to Google and search for it to find the best price. And that’s great for the business if they can compete on volume. For most vendors, however, competing on price just sets you in a race to the bottom and out of business. There’s a lot of pressure to lower prices because customers ask for it, but honestly, in my experience, don’t do it.
You priced something because your time is worth something. Hopefully, by this point you’ve determined what your time cost is to make something and you’ve factored it into the price. If you have not, make sure to figure this out! If you find yourself overwhelmed with no free time and resenting your customers, it’s because you forgot to pay yourself. It’s fun to look at other companies and see that you can sell something for less than them, but honestly, if that other company has been around a while, they likely know something you don’t. Use their pricing as your model not your weapon.
If you need another reason why you can’t compete on price… send me three dollars.
That’s right. You reach into your wallet, pick out three dollars and send them to me.
Well… if you give someone a discount, that’s exactly what you are doing! Remember you can’t compete on price because you’re ripping yourself off. This is reason to avoid the race to the bottom! People will ask for discounts. When you give a discount you are actually giving the person money out of your own pocket. WHAAAAAT?????
You’re a small business owner, you don’t get an hourly wage. You get paid AFTER you’ve paid the electric bill, rent, inventory, and employees. Yes, your employees get paid before you! So what’s left is what you get paid… so if you’re prepared to give that customer a discount, great. But your employee is not going to work for less, the electric company or your land lord will not give you a discount… therefore, the discount you give comes directly from YOUR POCKET. What your customer is saying is that “your product is super nice, and I really really want it, but you and your time are worth NOTHING to me, give me a discount.”
Seriously! That’s what they are saying.
Do not compete on price. Compete on value.
There’s a reason everyone in the market is charging a similar price, because that’s what it costs to provide the product or service! What I encourage is to compete on your Unique Value Proposition! What is it that you do or create that is unique? Focus on the thing that only you provide. Is it a color, shipping style, bundle, after sale service, unboxing, “the next step” – what is it that makes your business unique. That is what you need to sell! We just admitted that we all go to Google for price, you need to make your website attractive and trustworthy and you need to sell your story. Create the Unique Value Proposition so you are the “go to” for the sale!
PS: if you love my post, “Like” it!
1- What is your Unique Value Proposition? Spend some time brainstorming what it is that you already do (or can do) that your competitors do not do… This can be as simple as creating your “3 Point Super Service Policy” and come up with three points. I’m not kidding… haven’t you taken your car to get serviced with it’s “30 point service inspection”?????
2- Start marketing your Unique Value Proposition!!!
3– Install our app! (SmallBusinessClubApp.com)
Two ways to get more Small Business Tips …
A- Install our Free App (SmallBusinessClubApp.com –Apple or Android )
B- Subscribe to my blog at BigFishIdeas.com
Listen to Episode #77 of the Two Minute Commute audio blog Podcast