How Are You Competing?

Businesses often have many opportunities and methods to stand out from the crowd. It isn’t strange to look at your competition, or who you believe is your competition, to see how you compare. Your customers are doing it, so why shouldn’t you?

And while there are plenty of ways to differentiate your organization, there is one method that I advise against. 

Don’t try to be the lowest price, you will never win that battle.

Not because it isn’t possible to be the lowest price; absolutely, it is possible. But it’s not sustainable. Not financially and not organizationally. If you try to lower your prices to compete, eventually you will get to a point where you are losing money. Can’t stay in business for long if you are in the red.

Organizationally, lowering your prices doesn’t help you either. You may think that you’re doing your customers a favor by keeping your prices at rock bottom, but your prices also send a message to your customers regarding how much value they should place on your products.

You shouldn’t overcharge your customers but having prices that are too low says that your products aren’t of a high quality. Are your customers looking for products that are high quality? Short answer – yes. They’re looking for the highest quality they can get at the price they are willing to pay. If your prices are low enough for your customers to question the quality, then they will find a replacement, whether that’s now or in the future.

Never try to be the lowest price product. It’s not going to end well.