Small Business News: Don't Compete on Price

Posted by ShawnHessinger under Products and Services
From http://www.fastcodesign.com 4407 days ago
Made Hot by: BradenM on July 19, 2010 4:51 am

If your product is awesome enough, price shouldn't matter. Check out this small business news applicable to just about everyone. The incredible tree house built by a Swedish architectural firm profiled in this Fast Company article goes for $575 per night. Why? The pictures and description speak for themselves. How many other similar experiences like this are there out there? Does Holiday Inn offer comparable accommodations? Certainly not. So the price of a stay at a traditional hotel compared to one in this incredible tree house is really unimportant. Can your products and services make your competitors unimportant? They can if they're incredible.

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Comments

Written by m4bmarketing
4406 days ago

I would add one thought is that while you do not want to compete on price there are creative ways with pricing that helps your business. For example bonus pack offers of products or services or packaging up 2 or more products or services together. Before you implement these of course you need to see what volume you can sell to see if it is worth doing.

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Written by ajayjoya
4407 days ago

business competition should be not on prices, it must be on quality of business products.

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Written by ShawnHessinger
4407 days ago

The hardest part of all this is creating a product that communicates its value. This is what makes product development and marketing part of the same procedure. Too many people are of the opinion that the product comes first and then what you need to do is to find a clever way of marketing it, but in the best situations (like the tree house)the product speaks for itself...and is part of the marketing.

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Written by amabaie
4407 days ago

I have told this many time to potential writing client. We make it a policy not to be high priced, but I make it clear that we charge enough to use quality writers. If we start discounting, the quality will suffer and we pride ourselves on delivering quality work. The fact is that we lose a lot of business from people who do not have a realistic sense of what it takes to write their books. But to meet their budgets, we really would be going where we do not want to go...and we would end up losing a lot of money on those clients who can afford quality writers.

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