Here’s a great article from Tim Donnelly via Inc.com. The points he hits on isn’t anything earth-shattering, but definitely a good refresher for retailers and entrepreneurs alike who are often too distracted with their day-to-day operations to evaluate the health of their business.
Don’t want to compromise on price? Experts explain how to stay competitive based on the value of your product or service to consumers.
In a famous video clip from Penn and Teller’s Showtime hidden camera show, diners are lured to an upscale restaurant branded as the world’s first boutique vendor of bottled water. A water steward presents each table with a menu discussing the finer qualities of water purportedly shipped in from mountains and streams all over the world, some of which cost as much as $8 a bottle.
Of course, the joke is on the customers because all the water actually came from the garden hose out back, but the message was clear: People are willing to pay more for a product if they think it gives them a truly special or significant value—and if you present it to them in just the right way.
Your company is probably selling a stuff that’s a lot more valuable than fancied-up hose water. Selling on value, not price, involves a balance of confidence, personal rapport, and doing your homework, and it’s become more difficult as technology gives consumers greater access to price information and competitors. We’ve talked with veterans of selling their value, and they share some tips on how to make your products stand out in a low-cost world.
Read full article here.
The four main points are:
- Choose Your Targets Wisely
- Leverage Your Strengths and Experience
- Know That Confidence is Key
- Emphasize Your Customer Service
One thing that Tim reminds us of is that 1/3 of customers out there are going to be decisive according to price – that’s just the way it is. It’s the remaining 2/3 that you have a fighting chance of swaying your way or your competitors’. And that’s where the 4 points above come into play. In practice, these are easier said than done. It takes planning, practicing (and failing), feedback(ing?) and revising. Good luck!