In the business world, competition is inevitable- one of the biggest being competitor pricing. The key thing is not to let lower-priced competitors ruin your business. There is a way you can navigate through this barrier and still maintain your prices as well as your customers. In this article were going to learn just how to do this.
One thing a customer will always privilege over low prices is specialization. Clients always look for quality over cost. Once your product is specialized and geared towards and over a client’s expectations, you will retain your clients for quality.
Learn About Your Market
Sometimes, clients don’t go to the competition’s product because of the low prices. Take time and learn about your market audience. You may realize that your competition has a unique feature that drives customers towards their products. Make sure you are providing a solution to a need in your targeted audience. Don’t always assume that it’s because of competitor pricing.
Build a strong brand.
Your brand’s most important client is itself. Create a strong story that truly builds brand equity amongst your customer base. Empathize with your customers, understand them, and add value to them at all times. The story should lead towards flexible competitive pricing strategies that will help retain the customers and help you thrive.
Educate your prospect.
Find ways to educate your audience. People often pick a lower-priced product or service because they can’t see the differences. Show them the differences by educating them
Let your clients understand your business and your product. Explain to your clients the unique processing and high-quality standards involved in making the product quality. Show your clients the difference between you and your competition. This strategy will explain your pricing and give you an advantage.
Provide a Better Customer Experience.
It’s all about delivering a better first impression than your competitors. Give your audience exactly what they expected or more if possible. Try using different tools and technology, better than the competition. Let your audience be tempted to try your product that will make them stay.
For example, if your competition uses text and images, create a whiteboard or animation video to explain the benefits of your product.
Create a customer database
It costs 20x more money to get a new customer on board than it does to keep an old one. Customers are extremely expensive to attract which is why the smartest business owner focuses on a customer’s Lifetime Profitability rather than a single purchase. There is far more sense in having a long-term, repeat customer as opposed to a one-off buyer.
Where possible, partner with a brand that compliments your services, either on a short or long term basis. This helps give you an edge over competitor pricing as you have taken the step to add extra zest that appeals to your clients’ experience. This gives them a reason to seek you out compared to your competitor.
As you do all the above, bear in mind that we are all trying to win. Don’t throw shade at your competitors on your way up- we all need each other one way or another.
check our article on 7 Ways to Build Brand Loyalty through Social Media for more insight.