Distance yourself from the price war!
You’re in a crowded market and all your competitors are trying to outbid each other. You all offer similar services but you are struggling to get heard in the crowd. You think you are the best at what you offer, but everyone is in a price war. Should you join the crowd or distance yourself from the price war?
Does everyone really only buy cheap stuff these days? Is it time to stand out from the pack and be judged on something other than your price? Sales expert Jules White ran this poll on her LinkedIn and this is what she confirmed. Only 6% of respondents consider price most important when making a purchase. And yet so many businesses position themselves right in the middle of the price pack and regularly talk about it in their marketing.
A differentiator can take you straight out of the price war. Making your product difficult to compare to other similar products means you are no longer competing on the same terms. A great example is ground coffee, coffee bags, and coffee pods. All the same product but the value offered is different.
And what about an afternoon tea delivery? People will only spend so much on lunch, but make it into an experience or gift and people stop comparing it to other lunch options and forget about the price!
When you offer the same deal, it makes it easy for your customers to choose the cheapest offer. How could you market your product differently so that it is not comparable to your competitors? If you aren’t sure, maybe it’s time to do a competitor analysis!
Choose your marketplace
If you want to avoid getting sucked into a price war, then don’t market yourself in places where people are looking for a bargain! Facebook marketplace, eBay and buy-and-sell pages are all places that bargain hunters hang out. You’ll struggle to sell a premium product to these guys. Plus, you’ll be continually told you that you are too expensive and that’s not true, you’re only too expensive for them!
Instead, hang out where premium sellers hang out. Get a stall in a craft fair, or a pop up at a classy hair dresser. In those locations you’ll feel right at home charging what you’re worth and your customers won’t be expecting Primark prices!
If you still need convincing, I recently researched the price people would pay for a blog! Turned out that LinkedIn people are prepared to pay three times as much as those on Facebook!
Up your marketing
If you are still getting customers that buy on price, take a look at your marketing. And I’m not just talking about your social media posts and adverts, I’m also talking about your website, leaflets, shop front, packaging, and any other place you have a presence.
If you regularly draw attention to price in your marketing then you’ll attract customers that buy on price. Are you doing giveaways, free delivery, discount codes or use words like “value” or “only” in your copy? This is exactly the type of language that attracts price savvy customers. Marketing that screams “budget” will certainly put off your premium clients.
Also, revise your branding. Does it feel premium? Is it well designed or look home made? :Look at the fonts and colours too. All these elements give away clues as to your price bracket and service level. If your logo says cheap and homemade then that’s what your customers will expect from your service and price.
Know your worth
Figure out your true value. It’ll help you find a more premium price and be confidence in that price. Don’t worry about everyone else. They are in a race to the bottom, they’ll not be able to sustain that strategy for long. People that charge more tend to work less, they have more time and offer a better quality service.
How would your business benefit from a 1-1 with an experienced business adviser/coach?
Book a consultation with us now and we’ll help you figure this all out and make a strategy that is perfect for you!