Be Premium, Not Bargain

Episode Summary

In this episode, Robert talks about the trap of competing on price, the consequences of the strategy, and how to really position your company to grow.  

Highlights

If you are the low-price leader, it can attract the wrong types of clients to the business. Most of them are not clients that can grow your business. If your offering is good, then you should charge for it. Charging less devalues the offering.Some buyers get nervous when they see a low price. It can evoke the “What’s wrong with this?” mindset. Low price strategies can prevent from spending money to grow the business in the needed places.Customers that buy on price are not typically loyal. They will leave as soon as they find a lower price.Do not be the second lowest price offering. There is no strategic advantage to be the second lowest price.Being a premium price business attracts customers that have the resources and value what you are selling.People like to feel important and buying premium gives them the opportunity.No risk of being undercut if you are the premium option.Most customers that pay for premium trust the value and are easier to work with.Evaluate your offering specifically from the perspective of the customers that you want.Change your mentality from just offering a product or service to one of providing the best solution.Draw a line in the sand on pricing for new clients.Be willing to lose sales. It is an important part of the process. It is more important to have quality clients.Must focus on changing the perception of your offering in the marketplace.Find a way to enhance the perceived value. It does not necessarily have to be something big.