One of the TOP business failure causes is price competition. In this podcast episode, Joey Ragona talks about separating yourself from others without resorting to lowering your prices.
Top Business Failure Causes: Price Competition Podcast Episode #0013
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In today's’ podcast I want to talk about business and pricing your service or product…
Are you a failure if you have to resort to low prices?
Anytime you have to compete on price, you’ve become a commodity – which means the market decides your value… not you.
The top reason a business have become a commodity business is because they haven’t carved out a specific niche to serve a specific problem…
A problem that is unmet in the market
In other words, you’re just like the next guy…
When I say “unmet”, it means that there are very few options for the customer … or a solution AT ALL.
We get caught up trying to serve the widest market as possible because we believe there’s more money in it.
But the opposite is true and we end up competing on price..
When you dial in and focus on a specific problem, this is where you make more money.
1 – because you become the specialist
2 – there’s very little or zero competition
Let’s take an example from my real estate rental business:
There’s tons of properties available for rent and everyone is competing on price…
So I went into the market decided on ONE type of home I would buy to rent….
Nothing ground breaking there…
But what set me apart was that I advertised “pet friendly”
When everyone else said “no pets”
That immediately rented my properties faster and for more money.
Can you see how you can easily separate yourself from the herd by offering a solution that someone wants and is looking for?
This is power positioning and it’s where you make more money without having to compete on price by serving a single specific market.
Now it’s your turn – what is a market or segment of the market you can serve that is uncluttered?
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