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How Do I Stop Competing On Price?

competing on price

Today I’m going to talk to you about how to stop people shopping around.

Because quite frankly: competing on price is a lose-lose situation for both you and your prospect.

If someone is hunting the cheapest possible option, the person providing it at a cheap rate usually can’t provide the same quality, service and support. So, while the front-end price may be cheaper, the long term consequences end up being more expensive to the buyer.

While the buyer is being seduced by the low price, they’re getting sucker-punched because they don’t know the long term ramifications of choosing that cheap option.

In the end, everyone loses.

The supplier isn’t able to make any profit, so their business suffers, and the purchaser suffers because they’re buying a sub-par solution, but they often don’t know it.

So, if a prospect tries to negotiate with you on price, or suggests they’re shopping around for the best deal, they see you, your product or service as a commodity. One way to de-commodotise yourself is actually to just educate your prospects on the mistakes unsuspecting buyers make when buying the cheapest option. Spell out why going cheap is actually the most expensive option. And you then put yourself in a position to start changing people’s minds as a result.

That’s the trick. You break it down for your prospects. You break down the quantifiable amount it will cost in the future if they choose the cheapest option now. Be their crystal ball, predict the future, articulate the consequences – then create the collateral thy need to connect the dots.

You might create, for example, a 7 buying mistakes guide, and then turn this into an article, youtube video, audio, create slides – any format you can use to get it in front of your prospects.

You don’t want your prospects in that looking zone. That is: they’re looking and they’re getting quotes from other people. If they’re shopping on price, they’ll want a quote from you.

The thing is, you don’t have to give them a quote just because they ask for one. You could say something like this instead:

“Look, it’s highly unlikely you’re going to choose us, because we’re one of the more expensive in the market. If you’re looking to purely buy on price rather than on value, save your time, we’re not the people for you. However, I’m a big advocate for my industry, and I see people getting burned all the time, and getting themselves into trouble, because they don’t understand the hidden costs of the cheaper option. While it may be a great offer upfront, it’s actually going to cost you more in the long-run. We’ve done the research, we’ve put together a document and a video, I’d love the opportunity to send that to you to help you make the best possible decision. We’ll also give you a checklist that you can follow up to make sure you do get the best supplier for what you need. We’ve built these insights after 10 years in the industry having seen all the horror stories you can imagine. So could I send that through?’

Now look: if they aren’t interested in receiving that – they’re not the customer for you.

But if they are interested in your insights, you may be able to change the way they think and it’s likely it’ll change the way they perceive the value of what you offer as well.

It’s about providing people with all the collateral and content they need to make an informed and educated decision. It also backs up your most valuable items and justifies the high price.

Hope this helps. Hit me up in the comments below in terms of how you help prime your perfect target market.

And P.S. if you’re more of a watcher than a reader, you can check out the video I created to talk about this, here.