Don’t be the Cheapest

In a market that’s saturated with competition, with everything else being equal, the one that offers the lowest price is usually either the newbie or the laziest…or both.  I say this is usually the case because on rare occasions, they can also be the smartest if there’s more to them than just being the cheapest.

Why do many businesses try to offer the lowest this, the lowest that, free this, free that?  Because it’s by far the easiest way to compete.  Price may be one factor that affects a customer’s decision to buy, but it’s not the only thing.  For a lot of businesses, it’s too much work to try to figure out everything else that affects a customer’s purchasing decision, so they just try to compete on price.

I’ve learned never to engage in price wars.  There will always be somebody that will sell things cheaper.  Somebody can always find ways to make the same products we make cheaper.  There is always someone who values their time less, has less overhead, and is willing to give up more for less money.

If your only advantage over the competition is that you cost less, then there’s really not much that sets you apart.  You run the risk of having the most volatile client base–the price shoppers.  If the only reason your customers are shopping with you is because you cost less, they will drop you without batting an eyelash when someone else comes in cheaper.

Focus on offering true value, not just a better deal.  Build something spectacular, something worth talking about, something people need and want, something only YOU can create, something only YOU can provide.  When you’ve captured a market with something that’s uniquely yours, the world will be your oyster.