Do you ever find yourself talking with customers about pricing too much? Do you find yourself defending your position even though the profit margins are lower than you would like?
There is a reason that customers pay more for brand items.
Quality is Eventually Cheaper than a Quantity
Recently a Reebok customer told this story about how she grew up in cheap shoes. The shoes made her feet hurt; the shoes fell apart after a few weeks.
Then she got her first pair of Reeboks. And the pain went away, and the shoes lasted for years.
The repeat purchasing of the cheap shoes could have very well cost more than the purchase of one pair of Reeboks.
We have mentioned a few times now how important it is to position yourself as a brand in your industry. There are multiple ways to do that.
But today, I would like to touch on why it matters. Well, one reason anyway.
Brands Can’t Be Copied
Brands can’t be copied, but services can.
The minute you start talking about the line items or generic deliverables you provide, you instantly set yourself up for competition to start copying you.
We have client that strictly deals in commodities for the food industry. So basically, if the lettuce is not wilted and the carrots aren’t rotten when the shipment arrives, then all is well.
The only problem with this concept is when there are 10 other competitors that can promise that exact same thing. Then, our client starts to compete on price, which is a race to the bottom.
Now, let’s examine a stronger scenario.
Same client, same lettuce, same carrots. Only this time, the conversation is not about the deliverables. It’s what happens when that restaurant’s order is messed up.
Well, in our client’s scenario, her cell phone rings and things get fixed right then.
When this idea gets communicated, she then has a brand. The likelihood of that promise being copied is very small compared to the first scenario.
So, evaluate your marketing material. Is your message about the carrots or the promise?
How often do you present your product as just a thing without a promise attached to it?