Tuesday, January 26, 2010

Don't Compete on Price

If you are going to sell the same product or service as everyone else, sold in the same way and in the the same street too, then there is only one thing that differentiates you from your competitors - Price!

I don't know about you but I don't just want to be competing on price. That's reduced margins and a constant price war between you and your competitors to be the cheapest.

So how do you get away from price?

1. Don't sell the same product or service in the same way as everyone else.

Don't sell the 'same'! Find a way to re-package or add value to make your offer different. Seek out you customers and work out what they are really looking for when they buy from you. Tap into their desires and needs. Sell not just a product or service but an outcome.

Look for things that go with your product and bundle them in with a different price tag. Make yourself an advice and expert centre.

Do anything that steps you above your competitors and makes the price just one part of the buying decision rather than the only buying decision.

2. Don't sell in the same place.

Look for somewhere 'different' to sell. Size up your competitors and where their main selling and advertising focus sits.

Working out your customers real requirements will help you understand the problems they have and solutions they need which drive them to look for your products and services. Look for times and places that these may appear.

Work out what they may be asking or looking for - it may be different to how you would traditionally have thought. Then find ways of 'being there' at the right time.

This is all about finding your own Unique Selling Proposition or USP.

Without it you'll be selling on price and ever-reducing margins.

Need help getting your business moving? I'll see if I can help with your Sales and Marketing Strategy or your Website Profit