Winning in a price mad world

Often, we find that our clients have more problems with their prices than their customers ever do.
They communicate price to their customers and educate those customers to give price primary consideration, which means that the moment a competitor comes along with a lower price they lose a customer.

Your customer's perception of you is much more important than your price. If their perception of you is that of a quality supplier, unique product, convenient location etc, you'll win business. Perception is all there is. And you can change that perception even though you might be selling the "same" product as your competition and at a higher price.

By focusing on price you instantly set up the expectation in the customer's mind that he or she can "do a deal". In other words, if you're dealing in what you perceive as a price-sensitive market, don't blame the customer - look first of all at whether the customer has been made to be price-sensitive by the price marketing that's been going on.

So how do you reduce the impact of price in the sales equation?

Start from the basis that the customer always buys Value. The "equation" in the customer's mind goes like this:

VALUE = BENEFITS I GET
PRICE I PAY

Therefore, Winning In A Price Mad World Is All About Creating Value.

Clearly then, there are only two ways to increase the value: first, increase the benefits the customer perceives he or she is getting, or secondly decrease the price you ask the customer to pay.

If your choice is to reduce your price then you will have to dramatically increase your sales to make the same return.

Alternatively, how good are you at identifying and telling your customers of your benefits so that you are increasing their perception of getting great value from you?
If you are in business have you ever stated, "in our industry price dominates everything - our customers are very price sensitive - we cannot possibly put our prices up!"?

If you would like to discuss this or any of the matter previously covered please contact Les Styles or Ian Lloyd on 01925 761600