There a number
of myths about creating the right price for your customer and developing a
pricing strategy that is right for your business – here is one of my favourites
- If you are more expensive than your competitors then this will give them an
edge and customers will choose them instead of you
It’s quite easy
to see why the majority of business owners might believe this to be true - especially
when you consider that most of them believe that people make their buying
decision based on price and price alone
But let’s take a
step-back from business and look at things rationally
When we look at
business objectively we know that this just isn’t true - because if it was, car
makers like Ferrari, Maserati and Porsche and all of the other premium makes
would be struggling for business – and we know that just is not true – recent reports
show that Rolls Royce increased their sales 5 years in a row smack back in the
middle of a double dip recession while some of the cheaper car manufactures
nearly went out of business and had to be bailed out by the UK government!
There are, of
course, those customers who only buy the cheapest goods at the cheapest price –
those customers who will move from supplier to supplier in order to get the
price down – and there will be suppliers who will deliberately cut their prices
in order to obtain work at any price. But
the majority of customers don’t - even if they say they do!
But then, on the
other side of the coin, there are those customers who enjoy spending more on
what they buy in order to get better quality products and services and a better
overall customer experience
There are even customers
who believe that you get what you pay for and who therefore won’t buy something
because it seems too cheap!
Being cheaper
than your competitors doesn’t give you an edge. Chances are you will be chasing
a completely different customer from your competition. Think about EasyJet and the other budget
airlines – not to say that given the right circumstances a typical Virgin
Atlantic customer would not travel with a budget airline – but in the main a
Virgin Atlantic customer travels with them for a reason – and that reason is
unlikely to be about price
When thinking
about your own business always remember – good work is never cheap and cheap
work is never good
Let your
competitors fight with each other for those price buyers, while you target the
VIP first class clients who want to spend more, buy more often and appreciate
the true value of what you offer
Why?
Because the
people that buy more often and appreciate the value of what you do tend to be
your best clients - and the opposite is true for price buyers
I'm yet to meet
anyone who actually enjoys working with 'price buyers'
The thing is if
you're doing business with people that you don’t enjoy working with, two things
are true:
1. It is your
fault because you allowed them into your business and you keep them there
2. You don't
have to put up with it.
If you do put up
with it, then you're making a choice and if you don’t want to put up with it
anymore, then you should fire them. It’s as easy as that
If you want to
make a difference in your business then price should not be your biggest
concern. Contact us today and see how we
can help to solve your problems (and maybe even help you find ways to improve
your business so that you don’t always have to focus on price!)
Call us anytime
on 084 3289 3288 or email us at enquiries@blueboxconsultancy.com
If you want to
learn a little bit more about Blue Box, the things we do, and the people with
do it with, then check out our website at www.blueboxconsultancy.com
Until the next
time – be bold and do good business