Episode Summary
In this episode, Robert talks about the trap of competing on price, the consequences of the strategy, and how to really position your company to grow.
Highlights
- If you are the low-price leader, it can attract the wrong types of clients to the business. Most of them are not clients that can grow your business.
- If your offering is good, then you should charge for it. Charging less devalues the offering.
- Some buyers get nervous when they see a low price. It can evoke the “What’s wrong with this?” mindset.
- Low price strategies can prevent from spending money to grow the business in the needed places.
- Customers that buy on price are not typically loyal. They will leave as soon as they find a lower price.
- Do not be the second lowest price offering. There is no strategic advantage to be the second lowest price.
- Being a premium price business attracts customers that have the resources and value what you are selling.
- People like to feel important and buying premium gives them the opportunity.
- No risk of being undercut if you are the premium option.
- Most customers that pay for premium trust the value and are easier to work with.
- Evaluate your offering specifically from the perspective of the customers that you want.
- Change your mentality from just offering a product or service to one of providing the best solution.
- Draw a line in the sand on pricing for new clients.
- Be willing to lose sales. It is an important part of the process. It is more important to have quality clients.
- Must focus on changing the perception of your offering in the marketplace.
- Find a way to enhance the perceived value. It does not necessarily have to be something big.
