Consider this example:
What is the price difference between a Holden and a Mercedes– Double? More? If people just bought on price Mercedes would never sell a single car! So why buy a Mercedes, they both get you from A to B in fine comfort.
What Mercedes has identified is some people want the very best and are prepared to pay a high premium for what is essentially a small improvement. They can’t compete with Holden on price, nor do want to.
What they both do offer is value, and for each person the value equation is different..
It’s a case of identifying what is important to our customers and then working out a difference we can offer.
So what is it you do better?– Where do you add value? NO, NO, NO, Its not price!- some one more stupid than you will always undercut you.
So, How could a tradesman be different?
Be on Time, Clean shoes inside, Clean work site. Would people pay extra for these points? – There are some tradies doing really well with this strategy, actively promoting the benefit is of utmost importance.
How about a commodity like Televisions. Service, Company profile, (eg Harvey Norman), Convenience, Interest free, Availability, Installation, etc.
A construction company has three quotes $10000, $11000, $12000 to install an air conditioner. .. Could the dearest quote be the best value- possibly, if their point of difference is no problems, no fuss, on time when the customer needs it.
Who’s job is it to tell the customer about this point of added value– That’s right the seller. If you don’t not only are you letting yourself down, but your customer as well
Each customer will have different needs which you can add extra benefit around. Match this to your own special skill set and your on a winner.
Lastly:
If it really is price then you should seriously consider doing something else with your life, as unless you are Aldi, or the likes, you have two chances of ever making a fair dollar.
To be successful a business must know its point of difference, and work that point.
What is it that you do that is special?
