When you compete for business on price and miss out on the work, you lose. When you compete for business on price and win the work, you also lose. Being the cheapest is the toughest way to make a profit.
Instead, differentiate your product or service so that no one else offers what you do. If this isn’t possible, differentiate the packaging, the delivery or the guarantee. Do whatever you have to do to provide increased value instead of reducing prices.
And if none of this is possible find a different business before it is too late.
Over the years so many business owners have told me that their customers are different and that they are only interested in price. This is always the perception and never the reality. What happens is the customer calls and asks “how much for…” and response is to give them the price. This is a game where the cheapest wins.
Instead reply with “I am happy to give you the price, but is it okay if I ask you some questions first?”. They always say “yes” and this leads to a proper conversation where you can find out what the customer really needs, why they need it, when they need it, what else they need etc. You can educate them and add some real value.
There’s always someone prepared to do it cheaper and nastier than you. Design your business to never compete on price because of all the financial drivers in your business nothing impacts on profit as directly as price. A 10% price increase can lead to a 300% increase in profit.
Would you like some help with this?
If so, send me a message with some brief details and we’ll see if you qualify for a:
– 1 Hour Video Meeting.
– To review your pricing strategy to find the 300% increase.
Your investment will be $300 (+GST).
Our guarantee is that if you’re not happy then we will refund your investment in full.