As much as I hate to say it, merchants and business owners tend to follow the herd when it comes to most things. One of the most egregious examples is price competition. Everybody wants to be “the low price leader.” But the truth is that competing on price doesn’t make any sense, because there is almost always someone in any market who is a) crazy or b) doesn’t understand business and as a result is more than happy to compete with everyone on price. until they drive even themselves out of business. Don’t compete on price. It is a lost proposition.
What you want to compete in is everything else. You want to compete on service, quality, speed, convenience, and customer experience. You need to create a brainstorming sheet for every aspect of your business and find ways that you can deliver an amazing experience to people in your market. Think of ways you can go the extra mile in everything you do, so your potential customer says, “Wow! This company is terrific. I’m glad I’m doing business with them!”
Sure, in any market, you will have price buyers, people who buy only on price. There is no way around that. But at the same time, there are also people who buy based on experience, quality and speed. So don’t try to sell to your entire market. Leave out people who buy based on price. Just say to yourself: “Okay, I’m going to give up everything those people to marketers who are happy to compete on price and bankrupt each other. Starting today, I will not compete on price. That part of the market is invisible to me. From now on, I will only compete on everything else I can offer to my clients and prospects, especially that ‘amazing’ experience. “
This will help you build a more loyal customer base than if you were just competing on price. Price buyers are not loyal. Because they are only interested in cost, they will jump from one company to another in search of the best price. If you walk away from those people and provide the best service, provide it at the best time, and provide the best quality, then you can build a bond where people come back and do business with you over and over again, over and over again. in the years to come. But beyond that, if you give someone a ‘wow’ experience, if you give them something absolutely phenomenal, will they want to keep it to themselves? No! They will want to tell other people. We love going to other people and saying, “Hey, guess what? I just had a crazy experience with this company. I bought this product and they personally delivered it to me on a silver platter.” Now, “They shipped it overnight, wrapped in a red ribbon.” Or, “They sent a box of chocolates with him,” or whatever the ‘wow’ experience is for your market. People are going to share that and you will generate more business, free of charge.
Marketers in almost any business are very fussy about referrals; we want our clients to go out and get us more clients. Well, if you’re doing a good job and people are nice if satisfied, they won’t bring you more business, because they won’t get excited about your company. I do business with a lot of people and almost everyone does a good job. But it’s just a well job; there’s no reason for me to say to my friends, “Hey, this company is terrific and you should do business with them.” I guess they are just as good as the others, so why talk to them? But believe me, when I have an amazing experience with a company, I tell everyone, whether or not they have the opportunity to do business with that company. So whatever business you’re in, whether you’re selling information products, cleaning carpets, or selling real estate, think of some amazing experiences. How can you Really impress people?
They can be very simple things. Here’s a short example, courtesy of a colleague. He once hired a plumber to come to his house to fix a clogged sink. This was a new plumber, because he had been through four or five before, and these people came in poorly dressed, dirty, and with poor social skills, and my friend was never really happy, so next time, he went with another company. . Well this time he ran into a company that sent someone who was well dressed. He was very clean, wearing a nice polo shirt with the company logo, nice dress pants and dress shoes. And before he went into my friend’s house he showed up and showed my friend his ID, and then he said, “Oh, if you could wait a second, sir …” and put on these pink ankle boots. I know it sounds a bit strange, but they are just little cover-ups that cover the soles of your shoes with elastic. He put them on his shoes and said, “I don’t want to leave anything on your carpet.”
Now, that stayed on my friend’s mind forever, because before that, no one had cared! They had always followed the trail of dirt, grass, and twigs, and they never cared. Right off the bat, my friend got a great vibe from this gentleman. He walked in, did exactly what he said he was going to do, and gave my friend his business cards and a refrigerator magnet. It was a phenomenal experience! So guess who my friend called the next time he had plumbing problems? A different company? No he called that company, and called them over and over again, just for a few simple things the company does better than any other plumbing company in the area. Now he always does business with them and always recommended them to other people looking for a plumber.
So think of ways you can give people an amazing experience, even a simple one, while avoiding the temptation to compete on price, because that can destroy your business. People looking for just a low price are no loyal customers that you can keep for years and years. Why bother with them? But making a good impression is important, because it is a way to offer an unusual experience, to improve on all the others.
You don’t have to spend more money than your competitors to make a better impression. You just have to do the little things right. Give the customer a good experience and you will be rewarded. If you have to compete on price, it usually means you are cutting costs somewhere. Obviously, all companies exist to make a profit, and if you make a profit small enough to compete on price, you will have competitors competing with you and continuing to spiral you straight down to the bottom. Over time, there will be no profit left, and that means you are out of business.
Most people think that you have to have the cheapest price, and that is not true.
Well, price is just one of many things you can compete on, and it’s a terrible thing even if you’re committed to good service. But there is not enough money at the end of the day. You need to be able to afford to provide your customers with the kind of service that they not only appreciate, but also speak to all of their friends. Being the low price leader is not the way to do it. In fact, it is not the way to do anything other than destroy your business. Avoid it.