Marketers and salespeople are always concerned about price.
- Am I charging too much?
- Am I asking for too little?
- Could I be undercut by competitors?
- Are low prices harming the image of my brand?
Typically, marketers and salespeople err on the side of pricing too low. They research what their competitors charge and set their prices below them — or on the lower end of the scale. They believe that by doing this, they’re eliminating price as a barrier to a sale.
Why is this a mistake?
Because no one has ever won a race to the bottom. In other words, someone can always sell cheaper, until they’re giving things away free or selling at unprofitable levels, something no business wants to do.
This is a big issue for small companies or newer players in a competitive space. Bigger and more established businesses can afford to sell at unprofitable levels, and often do so to choke off smaller, newer or poorly-funded competitors.
That’s why it’s a better idea for businesses to offer products and services that are better — or maybe faster — than those of their competitors.
Instead of focusing on price when researching the competition, look for gaps or limits in what they offer. Then fill those gaps with your products and services, making them better or faster.
- Does the competition offer a single option? Provide your prospects and clients with more.
- Are they open eight hours a day, five days a week? Provide 24 / 7 access to your customer service reps.
- Does it take three days for them to deliver? Figure out how to get it done in one.
People are willing to pay for quality and speed. If you can clearly explain what makes your offering better, or how people can get access faster, most buyers will spend more, especially if your argument is a sound one, delivered consistently by your sales team.
Make the shift from cheaper to better by developing quality offerings delivered as efficiently as possible. Then work with your sales team to come up with messages and collateral to explain and support the sales of your improved products and services.
Leverage a sales enablement system like the one offered by Mobile Locker. It will help you distribute content about your better and faster offerings to your sales team, ensuring it gets used. It will also allow you to monitor its effectiveness over time.
What are you waiting for? Isn’t it time to end the race to the bottom and instead aspire to succeed by being the best and fastest business in your competitive space?