Thursday, January 05, 2006

Go Beyond Price - Go to success

A quote from a Top Peters book by David Friend,

"The challenge is to stand out in some way that goes beyond price."

How true.

Being the lowest priced provider hurts you so much in so many areas. First, it's easy for someone to come along and lower their price more and then you've just lost your competitive advantage.

Secondly, what is your opinion of organizations that continually have the lowest price? Do you see them as the best quality? Is Wal-Mart seen has having the best quality goods?

No, it's essential to build on something truly valuable to customers and price fairly to what you provide.

You need to have an advantage that it's difficult to top. Find your niche...guess what-price is taken.

What say you?

2 Comments:

At 8:00 PM, Blogger Olivier Blanchard said...

I've worked with CEOs who actually believed that, given the choice between developing the best, most innovative products and offering a same-as product at the lowest price, the latter was the way to go.

*sigh*

Truth: Nobody wins a price war.

Universities ought to make every business student repeat those words a hundred times every single day.

 
At 9:04 AM, Blogger Kevin Behringer said...

I agree completely.

Being not so far removed from business school, I look back and wish they had focused more on the things that matter. (And that I had payed better attention!)

Such focus on the traditional marketing tools (4 Ps, etc) is becoming dated and overrun by the people with the desire to do things differently

 

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