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How To Compete on Value, Not Price

how to compete on value

How To Compete on Value

Okay. business owners—I want to challenge you to stop competing on price! The lowest price does not always win in business today. People want value. They want service. We as consumers want to be taken care of. Here’s why it’s important to compete on value instead:

Why I pay more for my coffee

I love Biggby Coffee. I’m willing to pay a little more for it than I’d pay for the generic, store-brand coffee I used to buy. I started getting better coffee for a few reasons, even though it cost me more. And those of you who know me, you know I’m budget-conscious! I’m a budget nerd! But I’ll pay more for this coffee because it’s better! It tastes much better than store brand coffee. Plus it’s better for me because generic store brands often have a lot of additives, chemicals, etc. That’s why it’s cheaper—it’s easier to make! 

But more importantly, when I buy Biggby Coffee I know that my dollars are going to support a local business. I know the owners of this particular Biggby in Allen—Steve and Shelley. They’re great people! I’m sure the people working at the big box stores, the CEOs and owners are great people too, but I don’t know them personally. I’m willing to pay a little bit more for this, between it tasting better and having a relationship with the owners of the business, supporting a small local business. 

People will pay more for a better experience:

The overall experience when I go to Biggby is better than at your big coffee shop chains. When I walk in, everyone knows my name. I know the customers there, as well. It’s a local hangout—almost like a Cheers for coffee! 

Think about this with your business. Believe it or not, people are willing to pay more money if they feel they’re going to get a better product, better service and if they feel they have some kind of emotional connection like they feel they’re contributing to a great cause or a local business.

I don’t care if you are a plumber, if you have an auto repair shop, or if you do senior home care; whatever you do, remember that you do not have to have the lowest price to gain the business. In fact, more and more, people are realizing that there’s risk involved in going with something cheap. Think about clothes and shoes. You can buy the cheapest pair of shoes but they’re probably going to wear out quickly. Then you’ll have to go buy more shoes. So there is some risk involved with going cheap.

Why we’re not the cheapest:

I’ll admit that we are not the cheapest social media firm. But I’m sure you’ve heard stories of people who have gone the cheap route that way, and now they’re giving the lowest bidder their usernames and passwords, and the permission to be their front line voice on social media. How risky is that?

We want to provide value for those dollars. So I challenge you, whatever business that you’re in, focus on providing service and a great experience, and I guarantee you people will look past the four or five other companies that they got lower bids from because they know they’re going to get a better quality of service from you. Stop competing on price, and start competing on service! 

How to show your value:

And guess what? This is where a quality social media marketing program can really help you shine! Social media lets you show your customers the services and experience you provide. They don’t have to wonder, or guess, or hope! They can see from your Facebook posts and tweets, from your engagement, from your pictures and videos, exactly why they should choose you over someone else. When they can see who you are online, that justifies any extra investment or extra driving time they might have to get to you. When you focus on the quality of your products and services and then let social media show those off—that’s the winning combination that’s going to drive customers to your door.

To learn more about how we can help you compete on value, instead of price, click here:


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