Be Premium, Not Bargain

<p><b>Episode Summary</b></p><p>In this episode, Robert talks about the trap of competing on price, the consequences of the strategy, and how to really position your company to grow.  </p><p><b>Highlights</b></p><ul><li>If you are the low-price leader, it can attract the wrong types of clients to the business. Most of them are not clients that can grow your business.</li><li> If your offering is good, then you should charge for it. Charging less devalues the offering.</li><li>Some buyers get nervous when they see a low price. It can evoke the “What’s wrong with this?” mindset. </li><li>Low price strategies can prevent from spending money to grow the business in the needed places.</li><li>Customers that buy on price are not typically loyal. They will leave as soon as they find a lower price.</li><li>Do not be the second lowest price offering. There is no strategic advantage to be the second lowest price.</li><li>Being a premium price business attracts customers that have the resources and value what you are selling.</li><li>People like to feel important and buying premium gives them the opportunity.</li><li>No risk of being undercut if you are the premium option.</li><li>Most customers that pay for premium trust the value and are easier to work with.</li><li>Evaluate your offering specifically from the perspective of the customers that you want.</li><li>Change your mentality from just offering a product or service to one of providing the best solution.</li><li>Draw a line in the sand on pricing for new clients.</li><li>Be willing to lose sales. It is an important part of the process. It is more important to have quality clients.</li><li>Must focus on changing the perception of your offering in the marketplace.</li><li>Find a way to enhance the perceived value. It does not necessarily have to be something big.</li></ul>