The fastest athlete in the world, also known as Usain Bolt, knows that one day someone will break his record. It will become harder for him to compete with younger and quicker rivals. Even Bolt broke the last record holder for the 100m. Eventually, this cycle happens to every runner. The competition becomes faster, smarter and more elite than before.
As a business owner, it can be tempting to focus on lowering your prices to gain your competitor’s customers. You may win them over at first, but eventually someone will come into town with a lower price and you will lose.
So how do you stay clever and unique against competitors, while keeping your customers?
Every action has a reaction. What you choose to do, spend and focus on for your company affects the way it’s run. For example, small businesses are starting to send receipts to customers via e-mail rather than printing out each one. This allows the company to gain the customers e-mail for future online campaigns and save money on paper.
Value over price.
Prices will always change, but who you are as a company should stay consistent. Coca-Cola has kept it’s happiness campaign since day one. Coke focuses less on pricing and more on creating a lifestyle for their brand. At the end of the day, they stand out against competitors even if their price is higher.
Loyalty should be to your brand. Not your prices.
When you focus on having the lowest prices you will attract the cheapest customers. These price sensitive customers will leave your brand for a competitor at any moment. As a brand, you should review your portfolio and focus on what people want today and tomorrow. Pricing is already an insecure strategy and can damage your brand as a whole.
Focus on the right customers.
Who is your target audience? If you do not know, then you’re behind. Pinpointing your target audience should be after your brand has been set in stone. Your customers will be loyal, if you find the correct ones.