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It should be a surprise to absolutely nobody that price is a major driving factor in the buying process for most consumers. People are doing more research into the products they invest in than ever before - and a significant focus of that involves looking around, comparing pricing and making a decision only when they feel comfortable.

So while you should make every effort to keep your prices as competitive as possible, making price your key differentiator is a big mistake. What you make in short-term gains will only end up costing you in the long-run, thanks to a wide range of factors that are definitely worth a closer look.

The Modern Buying Process 

As stated, there are a number of other factors that consumers are looking for at various stages of the buyer's journey. Those factors include:

  • Quality
  • Customer service
  • Design
  • Features

So really, you need to ask yourself: would you rather be known as the brand with the cheapest product, or the one with the highest quality? What is better: to offer customer service that none of your competitors can match, or to undercut those businesses by a few dollars on each unit?

In both of those scenarios, focusing on quality or customer service (or superior design, or innovative features) is a great way to not only create higher levels of customer satisfaction and engagement, but loyalty as well. Consumers will pay more for products they believe are a better fit for their needs.

Focusing on price alone attracts short-term interest, especially if it's a really great deal, but the long-range affect on your businesses profitability and capacity to continue offering quality will be undermined. 

The Problem with "Price and Price Only"

Focusing on price as your main difference-maker is that it sets you up to compete on what your product costs, NOT the amount of value it can bring to someone's life.

If you remember that classic episode of "The Office" where Michael Scott opens his own paper company to spite his former employer Dunder Mifflin, you'll know exactly what we're talking about. Here, Michael dramatically undercuts Dunder Mifflin's prices and starts stealing clients immediately. But as his clientele grows, he realizes that he isn't able to continue that pricing structure for very long - hence, the Michael Scott Paper Company comes to an untimely end.

The lesson here is that if you are focusing exclusively on the "we have the best price" approach and ignore everything else, you're not really getting as far as you think you are towards the successful company you always hoped you'd one day be running.

Play Up the Strengths that Make You Unique 

None of this is to say that you should outright ignore pricing - it's just that you need to focus more on the other factors that make your business truly unique to the audience you're serving. Know what it is, besides price, that sets you apart from your competition.

Craft a strong message about how you're different from your competitors and, more importantly, why that matters. Someone else may offer a similar product to yours for a bit cheaper, but when your customers discover that this competitor lacks X, Y and Z features or they're impossible to get on the phone when a problem arises, price alone suddenly becomes less of an issue.

In the end, find as many things as possible that position your business and your products as a true industry leader in every sense of the term. Lean into those factors as much as possible in your marketing and you'll have accounted for a major step on the ultimate path to success.

If you'd like to find out more information about how to make your key differentiator something that truly makes you stand out in a crowded marketplace in the way it was meant to, or if you just have any questions you'd like to discuss with someone in a bit more detail, please don't delay - contact fuze32 today.


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