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3 Easy Ways to Beat Low Price Competition

By the author of: "More Loyal Customers: 21 Real World Lessons to Keep Your Customers Coming Back"

Kevin Stirtz helps companies increase revenue and profits by improving customer loyalty, customer retention and referrals. Kevin has started and grown many businesses in his career. As a consultant and trainer, he has experience with manufacturing, service and retail companies of all sizes. He is a certified trainer, consultant, published author and professional speaker. Kevin graduated from the University of Minnesota. He is regularly quoted by publications such as Business Week, Smart Money, the Boston Globe and the Minneapolis StarTribune.




by Kevin Stirtz

We've all dealt with competitors that undercut our prices. It's a fact of life and it won't go away if we ignore it. And (usually) matching or beating their lower prices does not solve the problem. It just starts price wars and sets the focus more on price than before.

Here are a few tips to help you keep the focus off price and put it where it should be:

Help your customer get what they want.



1. Label your competition

Use true but unflattering labels to position your competition as a less desirable vendor than your company. For instance, a larger competitor might be headquartered in another state or country. If your prospect values doing business locally, you label your big competitor as that out of state company. If you have a smaller competitor that works out of their home, maybe you label them as a "home business".

The purpose here is not to "slam" your competition (even though they might deserve it!). Your purpose is to position your company as a better choice in the eyes of your prospect or customer. Your true but unflattering label should bring to the surface information or traits about your competition that your prospect might find undesirable.

Remember, the customer buys based on their perception. They will develop a perception of you and your competition one way or another. You can influence their perception by labeling your competition.

2. Educate your prospect

The more you help them understand about the service or product they re buying, the better decision they can make. Find ways to educate them. People often pick a lower priced product or service because they can t see the differences. Show them the differences by educating them.

Some ways to educate them:

  • Non-selling articles and white papers
  • Seminars
  • Tests, research, reports
  • Demonstrations
  • Tours of your facilities

Be careful that your educating efforts are not thinly disguised sales efforts. People know the difference. When you offer to educate but you try to sell instead, you chase people away. They will not trust you because you've misled them. Don't sell when you're trying to educate!

3. Deliver a better experience

The experience your customer has with you and your company matters more than price. Make sure your company is doing everything right and make sure you know what they want from you. Find out by asking them. Ask, listen and repeat until you are 100% certain you know (and they know) what they want. Then tell them what you can do for them and how it helps them get what they want.

Delivering a better experience means doing what your customers want and expect and more.

Meet their expectations and then go beyond them. Surprise them in a good way. It doesn t mean being crazy or zany. It means helping them get what they want and then some. It means helping them discover what they want. It means showing them you want to help them and you can help them better than anyone else.

You won't always win with a higher price. Sometimes people really do want the lowest price. That's okay. If you offer more than low price then you want customers who value more than a low price.

Most people who say they want a low price are really saying:

"I want what I want, but at the lowest price I can get."

That's different than offering them the lowest price. Because the absolute lowest price product or service provider might not offer them exactly what they want.

Help your customers get what they want, all day every day. Do that and you make your low price competitors irrelevant. You take them out of the game. They become someone else's problem.



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