There has been a constant competition between value and price of a product in a business. It is a common perception that if a business is raising its prices, then that business has to stick to their high prices because if they lower their prices it will not be wise for their reputation. On the other hand, many independent business owners would be tempted to drop their high prices if their competitors have been offering the same product on cheaper rates. Dropping the prices might seem a good strategy to some business owner at that time but it really is not. Business experts suggest that it is a sucker’s game to be competitive over the price of a product. Real competition should be over the quality of the products and this is something you can win. Here, we have gathered a few facts that demonstrate why one should compete over value instead of price.
Change Your Target Customer Instead of Price
Businesses are developed for customers and clients. Every business is set up on a particular target market. They are the big part of business industry. If your customers are not buying from your shop and going elsewhere for low prices, then they should not be your clients. You need clients who value your products and your business as well. If some customers are going for the low prices, then they are not interested in the value of your product, they are only interested in the low prices wherever they find. These are the customers who don’t have enough money to buy your products or either they are only loyal to cheap products. The business owner should not drop the prices as these customers are not worth it. Maybe you will generate some revenue but what if the competitor will drop their prices more? You will be left high and dry in the long run.
Market Yourself for Quality Work
Small business owners who work online should find themselves quality work. They can only do that when they leave behind a mindset which says your friend can only be your customers or market. One needs to come out of his/her mindset and look for opportunities among those who value your work and are willing to pay according to it worth. Don’t work for whatever client comes along.
Value vs. Price Goals
In any business, there are 3 things that enhance the value. First, how good you are, second, how easy you are to get along with, and third, how much committed you are in delivering the work on time. If one can do all of these 3, then he or she should be considered on their value over price.
Add Something Creative with Your Product
In any business, there can be something you can offer to your customer as an added value that is totally different than your competitors. For example, if you are selling clothes, you can add some designs to wear that particular dress, if you are selling flowers, you can add a few tips to decorate with these flowers etc. Add these things just to compliment your customers.If you are an independent grocer, then you can give buy one get one offer to your customers.