What do you do if you're in an industry that focuses only on price? Your potential prospects focus on the lowest price and your competitors focus on price - even if it's to their detriment. If your prices are higher - and for good reason - what do you do?
I think this is the time to reinvent your brand around value.
As my business coach (Dennis O'Neill - The Business Growth Coach) says, there's a simple equation to define value.
VALUE = (Need + Trust)/Price
If your price is higher, then you have to built up the sense of need and the sense of trust.
I met a prospect who needed a website. He had been burned by another web developer who walked off with his deposit and did not trust web developers as a result. I worked on building trust by referring him to a collections specialist who got his deposit money back. As a result of this and other efforts I gained his trust and got the business. At the beginning the need was high but the trust was non-existent. At the end the need and trust were high and the perceived value of my services was high despite my price being close to twice what the previous developer had quoted.
Clearly identify and illustrate your prospects' needs. Demonstrate your trustworthiness. Do these things and price will become less of an issue as you will be seen as offering more value.
The View from The Niagara Guide
General observations and musings on how we can make Niagara a better place.
Mark Kawabe - Friday, February 05, 2010
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