This morning I was at a networking meeting and as part of the meeting everyone gets up and has a 40 second elevator pitch. You know the type, “My names Jo Bloggs and I’m from XYZ company and we’re really good at what we do!”
Out of the twenty plus business owners that gave their short presentation, there were two that said they had a guarantee. Now I’m a big fan of guarantees, so I listend carefully. Here’s what they said.
“I guarantee that we’ll be the cheapest and if you find anyone else cheaper, we’ll beat their price.”
I was gobsmacked! What they’re saying here, is “We’re really good at what we do, we’re so good at it that we’ll price ourselves lower than everyone else in the market.” They are basically admitting that the only reason to use them and the only difference between them and their competitors is price.
So what happens when they’re up against a competitor, who says the same thing. They have a bidding war and there’s only one way to free!!
It made me think about our pricing and whether we can offer a price guarantee and yes I can.
I guarantee that we will never be the cheapest in the market place and I guarantee that if you shop around for more than 5 minutes you’ll save yourself a few pound per thousand leaflets delivered. But I also guarantee you that we’re one of the best. (A big claim I know, but speak to us, we can back it up!)
We are not the cheapest and I don’t want to be. We are competitive and have a lot to offer and we charge a fair market price. Cheap service providers provide a cheap service! They can’t afford to invest in their systems, their people and their facilities. It doesn’t matter what business or industry, if someone is offering a cheap service, they are going to cut corners somewhere and the person that suffers is the customer.
Where you position yourself in the market place matters alot. Do you want to be thought of as a low frills, low skills provider, or do you want to be considered as an expert in your field that provides quality services and products at a fair price?
Now, if we accept that being the cheapest isn’t the best place to be, then when you are looking for goods or services, how important does that make the price?
We all like a good deal, and if you accept that you as a business don’t want to be the cheapest in the market, perhaps when you’re looking for services, you might reflect that the same may be true for the person you’re negotiating with.