There’s a lot of frustration about price wars, but not many entrepreneurs actually have a good reason why customers should pay more to buy their services/products. So until you can justify and communicate why you are so unique, then the battle over prices will continue. Here’s a question to get you going : Why should customers pay more for your products/services?
Unique Selling Point (USP)
These days, your unique selling point needs to go beyond the product and a smily face. With so many copy-cats around, and at the speed of new product development, you can’t afford to rely just on a great product and friendly service. Expand your thinking to your range of services, the way you do business, your distribution, the ease of purchase, your culture, your strategies. A unique selling point that lasts these days encompasses your business as a whole, not just products & services.
Can you guarantee what you promise? Can you guarantee it consistently? Can you put your money where your promise is? Promising that you’ll be better than the competitor is one thing, but what gets people curious and excited is a strong guarantee. And I don’t mean just a fluffy 100% Satisfaction Guarantee, but a real tangible guarantee. Think of Domino’s Pizza with their 30-minute delivery or your pizza is free. And here’s the fun part.
In the first month, all their pizzas were intentionally delivered late. Imagine the buzz when one household got a free pizza because Domino’s was 1 minute late. Before you know it, the whole neighbourhood was talking about it.
Embrace your uniqueness
Has it all been too focused on having a great product? Do you realize that your customers buy an experience? For retail companies, it’s more familiar. They buy the environment, the smiles, and the wow factor. But isn’t it the same for business-to-business companies?
No matter how commoditized you think you are, there’s always room for a “wow factor”. The relationship you build, the surprises you give to your loyal buyers, the client community that you build, the network of distribution you provide.
In my experience coaching business owners, I’m grateful for the wealth of ideas we’ve generated together with them about various unique selling points that gets the market talking. This is your first step out of a price war and into a more profitable business model.