Dropping the price can be a tricky strategy to gain clients. For any product or service, only one player in the category can be the cheapest. And specially when you compete (or want to compete) in a global market, there is always a risk that another company will come up with an even lower price. Is it price the best you can offer to your clients? Are you satisfied with the meager margin you get?
While many customers shop for the lowest price, their basic need is not always the price: they need to solve a problem. Customers appreciate value… even over price.
Borders don’t longer determine a marketplace. Today, businesses can expand beyond the traditional geographic limits. A smart plan can help you reach the global, specialized markets that are out there, somewhere in the world, waiting for your specialized solution.
So how do you get ready for finding them?
Strategically select your niche target
How do you find your clients? Don’t try to sell your products to everyone. Narrow down your target market, understand your niche. The more unique your solution is, the more chances you have to find a selected audience interested in learning more about your specific field.
If you can identify and define your niche, the right customers will be receptive to hearing why they should pay more for your solution. Especially when you have a sophisticated audience.
Define (or revisit) your Unique Value Proposition
Maybe you see your products and services as a commodity. But the truth is that, if you are in business, there is a reason why your clients are your clients and not someone else’s clients. Is it just because of the price? Go out and ask your clients what they like about your company. Maybe you get a surprise or two.
Even in markets where some solutions seem to be a commodity, it is your challenge as a business to discover what makes your products and services different from the rest. You must be doing something different.
If you find out, write it down. If you don’t, challenge yourself to think what you could do to to create a product that is not a “me-too” anymore.
Your business’ unique value proposition needs to live beyond books and business plans. In business reality, each company that is willing to stay in the game needs to know more than its strengths and expertise. Companies must understand what makes their solution(s) unique for a client to choose them.
Price vs. value
It may happen that your company doesn’t stand out today. Yes, that’s possible. But if you are willing not only to stay in business but to make money, better hurry up and find clear benefits for your clients. Competitors are just a click away.
These unique benefits that you offer, in the eyes of the client, will differentiate your solution from the competition. This is the real value your clients will be willing to pay for. Price is just one variable among many others that a client considers before deciding for a solution provider.
No matter where in the world you and your client are. As long as you offer true value to you global niche, distances are not relevant.
Be known for your value
You can compete for price and push a critical increase in sales volume to solve the pricing issue. Or you can offer the best solution in the market for solving the exact problem your clients have.
In the second case, you can become the expert in your industry, deliver real business value, share your expertise with your industry, feel appreciated and get paid for your value.
Go the extra mile and find where your solution adds value. This makes your company stand out among the crowd. Breathe deep, take the next step and share your knowledge with your industry. Position as an expert within your global niche and move away from the pricing competition.
If you find that there is not enough time in the day for this, or you simply don’t know where to start, NicheMktg am just a click away. We can discuss your business challenges and see if we can help your company move from the pricing point to a “value” positioning.
