Why Price Shouldn’t Be Your Core Competitive Advantage?
Whether you are manufacturer, retailer or service provider, if you cannot proclaim what your competitive advantage is, you’re losing your customers and market share to your competitors. Being able to coherent why your company is different is essential component of the marketing strategy. It helps to distinguish you from the herd.
Your unique value statement will be used throughout your sales process. It keeps your business alive and growing. Ignoring them can be can be a fatal mistake because after all, they’re the reason customers choose to buy from you.
Your competitive advantage must be able to answer 2 important questions.
- Why I should do business with you?
- What are you offering that the other guys don’t?
The common marketing flaw is that many businesses think that price is one of the core competitive advantage for an organization, where reducing your product or services price slightly will immediately give you a strategic competitive advantage. The advancement in technology has allows people to become smart consumers where they will research for product information before making a purchasing decision.
Most businesses cannot survive by being the lowest-cost providers, Wal-Mart can, but you probably can’t. Price isn’t everything, because when you compete based on price, you’re accepting commodity status. If you can build confidence while eliminating risk from the purchasing decision, price becomes much less of an issue.
The competitive advantage can be gained when you provide greater values to customers. People buy from you when they perceive that your company’s products and services are better than your competitors. Your unique value statement does not need to reflect your company’s strengths or the products’ features. People don’t care why you exist.
Find out what they care about and use that information to create a compelling unique value statement that resonates with their concerns.