Foundations of Small Business Marketing Part 2

We are continuing our series "Tough Economics - Back to Basics with a Twist." In Foundations of Small Business Marketing Part 1 (read it here) we discussed the importance of not making marketing about you. In part 2, let's examine how to make it about the customer while still maintaining value and pricing integrity.

FOUNDATION TWO: VALUE YOURSELF

Now all this talk about marketing not being about you does not give anybody a license to make you or your business a doormat. There is such a thing as a backwards humility where entrepreneurs don’t respect themselves enough and limit their potential. There is no other place where this is more evident than pricing.

In this market the temptation is to begin competing on price instead of value. This is a mistake because it leads to your business becoming a commodity.

What does a “Commoditized Market” mean? This is when nobody can compete on anything except price. This is ultimately a losing proposition for EVERYBODY.

Anybody with experience can tell you that lowest price does not necessarily mean the best deal.

Here’s what happens when you lower your price. Since the majority of clients are wired to seek the best value, and price is the only determining factor they see, they immediately will flock towards your company. And if new clients are purchasing from you, they aren’t purchasing from your competitor which starts a chain reaction.

Your competitors then lower THEIR prices which temporarily rectifies the problem. If they matched your discount, you are back at square one. So what can you do except lower your price again? This goes back and forth until your market has gotten so used to paying lower prices NOBODY wins. By that time your margins are so low, there is no way you have any room to create more value for anybody, even yourself.

What if your clients were willing to pay double for your products or services? How would you use that extra margin to create even greater value and bring more benefits to your clients? How much more relaxed and fun would your day be instead of grumbling under your breath all the time because you feel under-appreciated and resentful? (We’ve all done this at one point or another.)

We’ve all heard the phrase “The customer is always right.” This is both good and bad. Good in the sense it really established a high level of customer service but at the same time bad because it has been so often abused and taken out of context. The fact is the customer is NOT always right, but we believe they should feel loved and respected no matter what.

When you respect your business, and love your clients, they will respect you in return. In fact they’ll be HAPPY to pay full price for anything you offer. You will attract clients who resonate with your values. Later in this series we will demonstrate on how this can be done in any economy.

1. Are you valuing yourself and your business?
2. Does your pricing structure or offer reflect this?
3. What can you do to demonstrate more value instead of competing on price?

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