Benjamin Franklin understood what really matters when it comes to building a successful business.
“The bitterness of poor quality remains long after the sweetness of low price is forgotten”.
Rather than competing on price, which is always a race to the bottom, a more effective strategy would be to focus on what makes you unique, the values to which you adhere and the overall quality and service you deliver.
Then communicate that message to your audience.
Price becomes negligible when compared to reliability and trust.
There is a difference between price and value.
When your product or service delivers a true value, a cheaper price doesn’t matter.
Being relevant to your customer and understanding their wants and needs does.
Consider a commodity product, mosquito repellents.
Mosquitoes LOVE me. Perhaps it’s because I’m so sweet.
There are thousands of repellents on the market. I think I’ve tried them all.
My junk drawer is full of all types of mosquito repellants.
Fortunately I have found one that actually works. Sawyers All Natural.
It costs more than the rest, yet it’s a keeper because it delivers on a promise. I smell like eucalyptus and apparently mosquitoes don’t like that odor.
The fact that it works makes it a true value.
Another example of delivering on quality and a promise is the new Publix supermarket in our neighborhood.
Publix offers their generic products at a cheaper price than the well-known brands. However, if you find these generic products are not as good or better than the brand names, they will refund your money.
I’ve not been disappointed in any of their generic products.
Wow, what a concept, cheaper and better.
No doubt Publix researched the competitive brands and tested against them before making the bold claim of guaranteeing their products.
Goes to show that if you know your competition you can build better quality products and deliver them a better price.