Source: NorthFulton.com

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Business Coach
Competing on value versus price

by Dick Jones

February 22, 2014

How is your small business gaining a competitive advantage?

Are you competing based on the price of your product or service?

Or, are you competing based on the value you provide your customers?

If you've got a lot of competitors and are continually lowering your prices to remain competitive, competing based on value can get you more business.

It doesn't matter if you offer a commodity product or service, or if you have something unique; competing based upon value can differentiate your small business from everyone else.

An important first step in establishing what "value" you need to provide is to ask your customers.

In many cases you'll find that the reason they buy is not about the product, service or even the price, but the service that you provide.

Nothing compares to putting the customer first.

Many well-known brands, such as Starbucks, compete on value.

It is estimated that Starbucks sold 3.9 billion, yes billion, cups of coffee last year. While there are plenty of places to buy "lower cost" coffee, Starbucks provides a customer experience that consumers are willing to pay for.

Creating value for your customers requires creativity and the ability to provide a unique and valuable experience for your customers.

Focusing more time on your customers and what they want, instead of how you are going to price your product or service, will allow you to more easily retain and attract customers.