How Value-Based Businesses Are Crushing Their Price-Cutting Competitors
I get it. You’re busy. You don’t have time to figure out how to be different. As a result, you compete on price, and that is a race to the bottom no one really wants to win. I’ve seen this in countless business owners who tell me they are different because they answer their phone, or because they listen better to really understand what their customer needs. This is BS (A Belief System).
I get it. It takes work, and the business owners that I have worked with who took the time to identify and compete on value are more profitable. Some of the others who did not…well, let’s hope they like their new job.
This requires you to think and innovate. And no, I am not talking about spending a bunch of money to innovate. You can innovate in any of these areas:
- Expertise specialization
- Convenience
- Relationships and Trust (Hint you can’t say it they have to)
- Transparent Communications
- Extended Value Services
- Quality Guarantees
- Education
Let’s dig deeper in three of these areas.
Expertise and specialization:
An Auto mechanic could specialize in certain makes of cars. I have recently encountered several that specialize in high-performance muscle cars.
Or there are Accountants that specialize in unique industries or things like job costing.
Convenience
People are willing to pay a premium for convenience. Think about what couple of used loaner cars could do for an Auto shop in terms of attracting clients that hate to give up their car for repairs?
Accountants could offer evening or Weekend hours for clients that are working prime time and want a deeper conversation.
Quality Guarantees
An Auto shop could offer a three-year guarantee vs. the typical 1 year.
The accountant could offer a guarantee of audit protection and free amendments if errors are found.
These are just a few simple ideas of ways you can begin to think of ways to compete on VALUE and not Price.
