Stop competing on price!
Been doing a lot of Business Focus Reviews with small business owners recently. A common concern appears to be dwindling margins and price competition.
I keep getting told no one wants to pay full price, people constantly negotiate and leave to find cheaper options. Others believe they only win deals because they’re the cheapest supplier in town.
And in every case I say, “Bunkum!”. They’re having the issue for one major reason – which I’ll get to in a minute.
Before I do, let’s say you have a major legal case on your hands. Or you need a complicated medical procedure.
You need a great result. So would you choose the cheapest QC or Specialist Doctor in town? And would you try and beat them down on price?
Unlikely! If it’s important enough, you’ll stump up the money. You may moan about it, but you’ll pay what they demand.
So what separates these people from their commoditised brethren; people who swim in the pool full of competitors?
They specialise and articulate their value in ways that stop apples to apples comparisons!
Okay, these are pretty extreme examples at the top of their fields.
But the principles apply to everyone.
Here are some examples of “every day” services…
Many small business owners regard bookkeeping as a necessary evil to keep the taxman off their backs.
They either do it themselves (to save money) or grudgingly hire someone to enter the figures and do the BAS returns.
And there’s been an explosion of online bookkeeping services at ever cheaper prices, and even one major accounting system telling clients they can do it all themselves over hiring someone.