Making a deal successful, can be a complicated undertaking, in which you may compete on price or value. If you are focusing on price, you will find some of your goals will achieve a higher priority. Part of the fight in this market is to find the ways to bring people to it, to get consumers to notice the value in your products. This strategy is based on the premise that you are creating a product of superior quality.
- When trying to create value, there are many possibilities – from the content of your actual product or to your design, advertising, logo and so on. Your options are unlimited if you work with the right people on this goal.
- Having creativity, imagination and innovation on your side can be difficult for startups and is definitely a challenge. When looking at the facts, achieving a low cost strategy is pretty simple if you have the financial means. However, if you are just launching your business – like the vast majority of entrepreneurs – the choice is clear, they are competing for value.
In the competition for price
The logic is self-explanatory if you choose this option, lowering your prices can attract more customers.
- When we talk advantages, we need to point out that they depend on your availability and possibility to invest. Purchasing large quantities of products and then redirecting them to your customers will bring you the profit you hope for.
- The big drawback here is that your business will most likely have to run on a low-cost structure to keep up with your pricing. They will have to make an effort to keep spending at all times as little as possible, thus keeping them from dodging sales prices and not maintaining their competitiveness. At the same time, you must assume customers or competitors may question the quality that you can provide. Most of your clients will be bargain hunters who are known for their lack of loyalty because they only want to benefit from the simplest and the cheapest solution.
Here’s how you can find your way easier into competing on value:
Learn what drives value
- The first thing you need to remember is that value can come from both concrete and abstract factors. The quantifiable benefits include, above all, financial aspects that your customer likes to associate with your product or service. Abstract includes branding and customer experience. Let your customers know that the lowest price may not always be translated into the best quality. Show them that some things are more important than the price and that you can offer them exactly these things. Making such a promise could be the key to finding new horizons in the relationship between you and your clients.
The lowest price does not always mean the best value
- It’s true, and a bit painful, that many large companies base their process and progress on the lowest prices so that customers consider the most important factor in the purchase price. Although sometimes this is the case, many other factors play an equally important role in choosing the buyer.
Do not chase
- For some entrepreneurs, finding and keeping customers is a constant struggle. They use their best tactics and techniques and advertise strongly in their products or services. Others invest the same money in the development of a strong and competitive product that does not need much advertising. The key is to find the strategy that works best for your particular case. If your customers see the value in your products, in the long run people will buy from you, no matter how your competitors price and position their products.
Put your customer’s first
- Do not be afraid to put their positive experience and comfort above technology and efficiency. Customers approaching your business must know from the beginning that they can expect trust you. This not only means your company will gain a good reputation, but your staff must be available to handle their needs and expectations. The message sent to the market is that they want to work with a company that offers real quality service throughout the process. Just think about the great benefits that a positive perspective from your customers can have on your success.