Archive for May, 2017

Compete on price or quality

Monday, May 1st, 2017

A question every business owner need to ask is; “what makes my product or service worth what I am asking my customers to pay?”

A company can compete on price or quality but it is difficult to compete on both factors. To win over the customers if you are the more expensive option in the market you need to offer a premium service or product that adds more value to your buyers than they ever could expect.

Is it worth it to your company and to your customers to offer something premium? There are some things need to consider when offering a premium solution to the market.

Remember why you are doing what you are doing. Don’t forget why you are doing the work. Like Starbucks, who sell a premium product in the coffee segment, the vision is not to sell billions of dollars worth of coffee. Their vision is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at the time.”

It is easy to feel scared in the face of competition and especially if newcomers enter the market at a lower price. It is very tempting to lower your price and try to keep up with the others, but don’t do it!

Keep doing what you do passionately and be transparent abut your mission and include it in everything you do, both internally and externally. Invite your customers, and potential ones, to you and show them why your company together with them can make their situation better. Provide them with a nice service while doing it. It is not about splashing them with money and fancy dinners, it is more about showing that you and your business care about them. Your customers will notice and that’s why they will keep coming back to you.

Try to pinpoint your customer’s problem. Become a problem solver for your customer and you will become invaluable. When you talk to them be clear that you have identified their problem and how your business can be there and help them solve it. This communication can be done through email or SKYPE or regular phone call. If use e-mail make sure that you take your time to write your customer in a personal yet professional way showing them that you understand them and care about them as a customer. Make sure when they read your e-mail they get the feeling that you care and you are the one who they should hire.

Customer loyalty is more important than you think. Apple and Starbucks are two brands that can be described as warm and competent, both of them are famous for their great customer service and premium products. So even though both of them are more expensive options in their markets, they beat their competition by providing an exceptional experience for their customers.

No matter if you are selling a product or service there will always be competition. Stand strong with both feet on the ground and remember why you do what you do and focus on what you can offer and how. When you meet a competitor in your market, don’t chase after them, focus on your core business and service, offer something even better to the market and make the buyers understand that with your business, they get the most value for their money.