Price Cut I its a Losing Strategy, And You’re the Loser

Have you ever had compete with a price cut?
A price cut only does one thing: cut your profit.  And profit is tougher and tougher to come by.
Is anyone tired of resorting to a price cut?
I don’t blame you.

Try a price cut.

But everybody has to compete by having the lowest price.  Right?
No, not really.

It’s like this.
Consumers get an idea that they want something.
So they start looking around.
Most start by looking for information.  Think about the last time you wanted to buy something…a bike, a car, a house, a computer, skis, or anything more than just a candy bar.  They comparision shop.  They try to find the best choice.

A price cut can’t help.

But for better or worse most advertising looks the same.  Most sales pitches sound the same.  Most businesses are copy cats.
Just look at a few Yellow Pages Ads.  I opened my Yellow Pages to Limousine Services and looked at two competing ads.  They’re practically identical.
24-hour door-to-door service.  Weddings and Special Occasions.  Corporate Accounts.  Courteous Uniformed Drivers.  All Airports.

I’m pretty smart, but I can’t see how they’re different from one another.
So what’s left?  Price.
Price is easy to see a difference in, even right over the phone.
$99.  $129.  It’s easy.  If your price is high, it’s time for a price cut.  Right?

Are you different from your competition?
Does your prospect know?  Does your advertising or your sales pitch say how you’re different?  Can anybody figure it out?
Or do you just compete on price?
I bet that you really are different from your competition.  You probably DO something different from what your competition does, and it’s a benefit to your customer.  But they probably don’t even know it.  So they can’t value it.  So…they look for the lowest price.

I’ll bet that if we sat down and talked about how you service your customer I could find ways that you them your customers that they’d actually value MORE than just the lowest price.  When your customer knows how you’re different from your competition, you’ll never have to compete on price again.

Yet another price cut?

Make no mistake.  Either you make an effort to show how you’re different from your competition, and why it matters…
Or you can just compete with another price cut.
Need help showing your customer how you’re different?  Send me an email and I’ll show you how easy it is.
I’ll even buy you coffee.
Casey Hart
hart@informermessages.com