Friday 30 April 2010

Solicitors Stop Competing on Price

“You can’t compare apples and oranges.”

I’m sure you’ve heard that expression, maybe from your grandma or your mother.

I’m going to tell you that in business it doesn’t pay to take her advice.

I hear from many salespeople that the product they are selling can’t compete on price with their competition.

That they can’t sell the product any cheaper because they’ll go out of business.





The reason that selling purely on price isn’t a long-term strategy is because you will always be beaten.



There’s always someone that will do a better deal to get in the door, will discount more heavily or offer a product of lower quality that your customers and prospects will accept.



Sure, people love superior quality, they just don’t always like to pay for it.



So your challenge is not to compete on the same terms as everyone else.



If you’re not winning the game, change the strategy.

Make it impossible for buyers to compare your product on price alone.



What action can you take?



Look at your product or service with fresh eyes.



Can you add value, bundle products together, extend warranties, offer guarantees, delivery and completion speed?



What can you offer as a free premium?




  • Hotels offer free breakfasts

  • online companies offer Fedex next day delivery

  • website designers offer unlimited re-design

  • storage firms offer free pick up of items from your home

  • newspapers offer guaranteed response adverts




Can you offer a checklist of things your product does that your competition doesn’t?



Invent an unfair advantage for your product.

Make it impossible for your competitors to keep up with you.

Use apples to oranges comparisons and eliminate price resistance.

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