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How To Price Your Products or Services
Trust me, once you start competing on price, you can count on it that someone is coming along who will beat your prices
Even if doing it ultimately bankrupts them
Listen: There is no glory in having the second lowest price
Trust me, once you start competing on price, you can count on it that someone is coming along who will beat your prices
Even if doing it ultimately bankrupts them
Listen: There is no glory in having the second lowest price
When you compete on price you have no choice but to be the cheapest,
you know what that leaves you with?
Slim margin - low profit
And gradually it will shrink and the raise to the bottom will be faster than how Usain Bolt beat Tyson Gay and Justin Gatlin to the finish line
you know what that leaves you with?
Slim margin - low profit
And gradually it will shrink and the raise to the bottom will be faster than how Usain Bolt beat Tyson Gay and Justin Gatlin to the finish line
Talk about Price war:
Let's go down memory lane,
Many years ago in
there were companies called "category killers"
I'm talking about companies like Toy 'R Us, Office Max, 84 Lumber, Circuit City, Barnes & Noble, just to mention a few
You know what they all have in common?
Let's go down memory lane,
Many years ago in
there were companies called "category killers"I'm talking about companies like Toy 'R Us, Office Max, 84 Lumber, Circuit City, Barnes & Noble, just to mention a few
You know what they all have in common?
They all had advanced strategies in driving prices lower,
they did so to win customers over, kill competition and stand alone as the big boy in their category
But not for long...
You know, customer loyalty is difficult to maintain under any circumstances but...
they did so to win customers over, kill competition and stand alone as the big boy in their category
But not for long...
You know, customer loyalty is difficult to maintain under any circumstances but...
But that difficulty was magnified as these "category killers" competed on price
You see, those category killers that started Price Wars in their space eventually became victims of their price strategies
You see, those category killers that started Price Wars in their space eventually became victims of their price strategies
I mean,
Circuit City went bankrupt,
84 Lumber was been squeezed out by Home Depot,
Office Max was crushed by Staples and
Costco squeezed Staples
Walmart smashed Kmart
More familiar is Barnes & Nobles now standing in the shadow of Amazon
Circuit City went bankrupt,
84 Lumber was been squeezed out by Home Depot,
Office Max was crushed by Staples and
Costco squeezed Staples
Walmart smashed Kmart
More familiar is Barnes & Nobles now standing in the shadow of Amazon
A quick lesson:
"A competitive advantage of a low price cannot be maintained forever, it's an unsustainable advantage"
Keep that in mind when you want to place a price on your products
Also, the bargain for a cheap price and securing a big discount may satisfy momentarily but
"A competitive advantage of a low price cannot be maintained forever, it's an unsustainable advantage"
Keep that in mind when you want to place a price on your products
Also, the bargain for a cheap price and securing a big discount may satisfy momentarily but
... But only
"REAL VALUE, QUALITY AND SERVICE CAN RETAIN THOSE CUSTOMERS"
Also, instead of coming into a crowded space with a lower price just to get disloyal customers
Why not,
Target real pain point that customers are experiencing with the incumbent players and then..
"REAL VALUE, QUALITY AND SERVICE CAN RETAIN THOSE CUSTOMERS"
Also, instead of coming into a crowded space with a lower price just to get disloyal customers
Why not,
Target real pain point that customers are experiencing with the incumbent players and then..
Offer value by responding to those pain points that customers have
A quick case study is Zoom,
Yes! the same Zoom that people have been talking about lately since the lockdown started
Before Eric started Zoom, he was one the Engineers that created WebX
Oh! You don't know WebX
A quick case study is Zoom,
Yes! the same Zoom that people have been talking about lately since the lockdown started
Before Eric started Zoom, he was one the Engineers that created WebX
Oh! You don't know WebX
Cisco bought them and on top of that they had a very terrible video conferencing service
But Eric before starting Zoo was said to go after WebX users to know their pain-point
He observed the pain-point of users of other services like Skype and the rest..
But Eric before starting Zoo was said to go after WebX users to know their pain-point
He observed the pain-point of users of other services like Skype and the rest..
And then he came into the market with a solid value for customers of video-conferencing service
Fast forward 2020, they are considered to have the best service because they came with great value and superb services with bonuses,
Takeaway: Add value, Bonus to your offer
Fast forward 2020, they are considered to have the best service because they came with great value and superb services with bonuses,
Takeaway: Add value, Bonus to your offer
And watch how customers will drop their hard earned money while they call you Messiah for solving their problems
Note: if you starting your business, ask yourself
Is my business a Pain Killer or a Vitamin?
If it's a painkiller people can't do without you, but...
Note: if you starting your business, ask yourself
Is my business a Pain Killer or a Vitamin?
If it's a painkiller people can't do without you, but...
But if it is a Vitamin, people can do without it
Yes!
You too, when was the last time you took Vitamins
But just a little headache, and see you begging for Painkillers
ICYMI: Compete with value not on price
I assure you there are people(customers) who have conquered prices
Yes!
You too, when was the last time you took Vitamins
But just a little headache, and see you begging for Painkillers
ICYMI: Compete with value not on price
I assure you there are people(customers) who have conquered prices
