How Your Kelowna Business Can Avoid Competing On Price

Kelowna business competitng on priceAs a Kelowna business you may be experiencing some fierce competition with a small population to rely on for sales and revenue. The appeal of quickly establishing yourself in the market by pricing low can be quickly dispelled by the reality of its many downsides.

I do not personally believe price should be the primary factor that distinguishes you from your competition. Some industries don’t have a choice so it is inevitable that there will be a few exceptions.

How Are You Going To Be Different?

Differentiation is what you need to be working on. When I say differentiation, I’m talking about value. If you’re providing a widget and your competitor next door is providing the exact same widget, how can you change the price?

You likely cannot, but what you can do is make them want to buy the widget from you. You accomplish that by offering better customer experience, service, follow-up, etc. The “soft” stuff needs to be done because they can buy the product from anyone.

The Soft Stuff Counts

It’s much easier to sell a product that is not identical to your competitor because when you compare a product that is only similar then they can’t actually compare it dollar for dollar.

A car dealer is a perfect example. You can buy a Mercedes Benz or a Honda…it’s a car. Why are you paying more for the Mercedes than the Honda?

It’s because of perceived differences, actual differences and the service and functionality of what is offered. The soft stuff can be the difference that sells your product over your competition. Whether you product is identical or different, the being better at the soft stuff will make you able to increase your price.

What I mean by the “soft stuff” is the stuff that sweetens the deal for your clients. This can range from exceptional service to even smaller things like donuts and coffee (or a healthier version, fruit and herbal tea) in the waiting room. Focus on making everything about your business’s experience feel exceptional.

Kelowna business competitng on priceCracking The Value Code

The most crucial aspect of not selling based on price is deeply understanding your target market and selling to their specific needs. Any experienced and savvy salesperson will tell you selling on price is a waste of time.

Your clients are interested in your services because they have a problem that needs to be solved. The better you understand that problem, the better you can help solve it.

If you can save your prospective clients time by helping them conclude that your service or product is the one that will fix their problem as fast as possible, I can assure you that your Kelowna business will thrive well into the future.

Keep Raising The Bar

It’s true that the most valuable lessons are often the most simple and obvious ones. If you want to be on top of your industry then you’ve got to keep raising the bar and actively seeking ways to get ahead of your competition before lowering your price.

Your Kelowna business has a great opportunity to capitalize on the shortcomings of your competition with the tips listed in this article. Remember, you don’t have to lower your price…just raise your customer’s expectations and strive to exceed them!

What are some ways you’ve improved your service to increase the customer experience? Leave a message in the comments below!

 

 

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