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Price Competition and How to Do It

Posted On - 09/01/2014 15:32:52

A new take on an older adage.. Courtesy: The Pyramid of RealityThere's an adage about price that goes like this: ‘we do three types of service: good, cheap, and fast. You can pick any two.'

It then goes onto point out what this means: ‘good service, cheap won't be fast; good service fast won't be cheap; and fast service cheap won't be good'.

Nothing that's been said would jar with anyone. Customers know there's a cost to price. And if they challenge you, it's not because you're unreasonable, it's just a normal part of ‘doing business'. It's because they want to know they're paying a fair price.

People believe the big chains are great value because they have buying power. Combine this with their price led broadcast media promotions and you can see why people might expect you to be uncompetitive. And whether this is a fair comparison or not misses the point: shoptalk research proves it's not true.

Our research also shows many businesses under-price. Our experience tells us this is done to contend with the internet and back-street operators. But this behaviour is pointless and destructive. They price cheap because they're worse. And every % less than could be charged, comes directly out of your profit. So you have to sell more just to stand still.

If you're to compete on price you must understand how to approach it. Because the issue isn't about the numbers, it's about opinions. The defining purpose of your marketing is not about raising awareness of your products and prices. It's about persuading people you're clearly better.

At the risk of sounding glib we know you already know how to do this. We know you know you need to do more to sell your value. And we also know how baffling this advice is. Because how do you take something so vague and make it actionable?

You can market your value and it's far easier than you think. To find out how follow this blog series over the coming weeks. Not only will we explain what you need to do, we'll point out how to do it and give you actual examples of materials you could use.

Posted On: Jan 23rd, '14

PCC

Joined:
2466 days, 8 hours, 42 minutes ago

Posts: 161

Rank:

John, I cant like this article for some reason. But I do like it!
  
Posted On: Jan 24th, '14

JohnC

Joined:
2553 days, 6 hours, 23 minutes ago

Posts: 468

Rank:

Hi PCC. What can I say :-)! Gotcha? But seriously, can you share the quandry?
  
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