Stop Losing Business to Price Competiton

Stop Losing Business to Price Competiton
March 12, 2019 Biznostics

 

Are you losing business to price competition?

When one or more of your competitors cut their price and you’ve missed out it can be very tempting to cut your price and try and compete in this competitive marketplace.

The problem becomes if you start winning work on price then you can also lose it on price… and someone will end up going broke.

So before you cut your prices let’s look at some other things you can do to win the job even if someone is trying to price cut.

1) Ask yourself is the work worth winning?

Not all work is created equal.  Not every job, quote or contract is worth winning.  Some may have very tight margins, have potential problems or the customer may be difficult to deal with.  In some cases it may be a while before you get paid.  Be clear about the sorts of business and customers that you truly want to work.  In some cases not doing the work can be a blessing in disguise.

2) Value always trumps price

In the absence of value, pricing becomes the focus and it becomes all about price.  When you’re presenting yourself to a customer how well do you demonstrate why they should choose you and not your competitor.  You need to come from a place of what is so valuable about your business, service or product and focus on that.  Think about the different ways you add value around your service, track record and experience.  And be sure to relate this back to what is important to your customer.  By introducing other factors other than price where you add value then you move the customer’s focus away from price alone.

3) What are your points of difference?

What’s so different about dealing with you versus your competition?  What are your points of difference?  We’re now living in a world where it’s no longer just about a single point of difference… it’s about all your points of difference.  The more points of difference you have which are beneficial to your customer the more likely you’ll win the work.  Think about your points of difference that are important to your customers and communicate them in all your dealings with them.

4) Under promise and over deliver

Sometimes it can be tempting to promise all kinds of things so that we win the work.  Now it’s okay to promise things but make sure you under-promise and over-deliver.  Don’t over promise and under deliver.  Always be considerate about what you promise and work really hard in the background to over-deliver.  For example.  If you say you’re going to get back to them in three days then get back to them in two days.  Or if you do quotes and you say you’re going to do a quote in seven days then always deliver it a little bit earlier.  The simple act of under promising and over delivering will set you ahead of your competitors.

When you do these four things you’ll find that you’ll win more of the type of work that you’re after and you won’t get so caught up in price wars.

 

P.S. Whenever you are ready here are 4 ways we can help you build and grow your business:

1) Download your copy of 3 Proven Tactics That Give You 5 Hours Back in Your Week

This totally free guide includes tips, time-savers, and expert advice on how to immediately claim back 5 hours of your time each week. Inside you’ll discover 3 proven tactics to stop time being wasted in your day so you get more done each week. To access the guide click here

2) Watch the Business Freedom Formula Video

In the video you’ll to discover the step by step blueprint we use to help small businesses create their version of business freedom. This could be simply streamlining your business so it runs more efficiently, increasing your profits so you have more choices or setting your business up so you can have time off without worrying that it is all going to fall apart. Click here now to watch

3) Book a 10 Minute Exploration Call

If you would like to explore how Biznostics can help you run and build your business, then book your 10 minute exploration call. On the call we’ll find out a little bit about your business and work out if and how we can help you.  Book your call here

4) Join our Business Freedom Program

The Business Freedom Program is designed for business owners who feel stuck in the day to day running of their business and their business is not running as efficiently as they like. It helps you make your business much more profitable, much more efficient and much more enjoyable to work at.  We are putting a new group together next month so if you would like to build a strong and successful business email us here with ‘Business Freedom’ in the subject line.