Do you struggle to strike the right balance between the high quality and low price your customers demand? You are not alone. Many businesses are feeling the squeeze as our economy continues to stagnate and customers are looking for low cost alternatives.
You Can’t Be Both
Let’s be clear on one thing. You cannot occupy both positions in the market – highest quality and lowest price – with the same product, unless you are willing to lose money. You have to choose a position and then work out how to present that position to your customers.
Low Price Race to the Bottom
If you decide to compete on price, you face two challenges: you have to sell more units to make the same revenue, and you remain vulnerable to competitors willing to undercut your pricing.
I hear about this all the time from those who are looking for freelance work. No matter where you set your rate it seems there is always somebody else willing to work for a little less, especially given the prolonged unemployment situation many face in the US. Those who get caught up in that race to the bottom end up sacrificing their reputation with low quality work. Many simply go broke a little more slowly than if they had just given up altogether.
Perception Is Reality
If you are among those who refuse to accept a price that does not turn a profit, you must position your products and services so customers understand why they have to pay more than the rock bottom prices others are offering.
You need to turn conversations about price into explanations of value. You need to create a desire in your clients for your minimum standard of excellence. Then you will find that they will gladly pay for the value you add.
So, whether you are an insurance inspection service based in Lowell or an appliance store in Bedford, the onus is on you to make sure your customer perceives that your offering costs more because it should, and it is worth every penny.
6 Word Positioning Statement
I like the example in the photo above. With just six words, the advertiser creates a perception of exceptional flavor. Using Quality as the brand name sets the consumer up to believe that all other ice creams have a non-Quality taste.
Would you like to learn how a freelance writer can help you communicate your value to prospects and clients? Contact Tammi Kibler today to learn more about marketing communication pieces that lead to better positioning in the marketplace.
photo courtesy of KB35











