If you had to choose between doing less and earning less, or doing more and earning more, what would you choose?
Seth Godin says:
“Low price is a great way to sell a commodity. That’s not marketing, though, that’s efficiency.”
It’s extremely common practice to reduce a price in order to win business. As Seth Godin says – this is efficiency, not marketing. Wouldn’t it be better to offer your customers something so amazing that they are willing to pay more, rather than less?
IGA do it. They offer extended trading hours and support local businesses. As a result of these key differentiators, they charge more. I often find myself at the local IGA picking up random bits and pieces that I can’t get from large supermarkets, either because I know they are open, or I can only get it from the IGA.
Pizza Capers do it too. They entered an extremely competitive market, famous for the coupon price-war, and have successfully convinced people that their pizza is better… but it costs more. People see the value that they offer and are happy to pay for it.
So next time you consider reducing your prices, why not consider how you can improve your product/service offering to encourage people to WANT to pay more for it?
Here are some ways you can differentiate your business and add value for your customers:
- Make your product/service different to your competitors.
For example: IGA offer extended trading hours and unique products.
- Lead the way, by introducing a new technology associated with your product/service.
For example: Dominos introduced the iPhone app, making ordering an easy, quick and convenient process, at a higher cost.
- Offer the highest quality product/service.
For example: The Fat Duck Restaurant uses only the finest ingredients to make the finest meals, using the finest of chefs.
- Guarantee amazing service levels
For example: Apple Stores offer a swap over of faulty equipment on the spot if you have AppleCare.
- Offer an outstanding warranty
For example: The standard warranty term for a projector is 2-3 years. InFocus offer a 5 year warranty on their projectors.
- Be Environmentally Friendly
For example: The Body Shop claim they are different because of their values.
If you’d like to talk more about how to differentiate your business, please contact us on 1300 4 DEBUT (1300 433 288) or email@example.com.