best v’s cheapest
This is a Guest Post vy Ben Lumley from Thebenlumley.com. Ben is a super geek and motivational speaker, fighting evil forces and keeping you on the straight and narrow with your goals. If you want to find out more about his services click the link. If you’re interested in writing a guest post check our guidelines here.
Over to you Ben:
So for my j-o-b I do a lot of driving up and down the country, visiting schools and colleges. When you’re on a long drive it’s easy for your mind to wander slightly, or in my case, you become inherently nosey and start looking at the other cars and people around you. This isn’t always well received but it’s definitely fun!
I was on a drive like this the other day when, in the space of an hour or so,around 10 different cars and trucks passed me with slogans like…
- lowest prices,
- great value,
- we won’t be beat on price,
- if you find it cheaper we’ll give you the difference back
It struck me that I don’t actually like buying the cheapest stuff.
Because low prices don’t always equal great value. Sometimes paying the lowest price means you get the worst product or service and in the end you have to go and spend more money to have it fixed or replaced.
Here’s what I want to ask you today about your business: Are you selling at the lowest price or are you offering amazing value and quality?
I’m my mind it’s very hard to give amazing value AND quality to anyone for the cheapest possible price.
So being a massive geek I couldn’t really have talked about examples of high quality without mentioning Apple. Apple don’t sell at the lowest price, not because they can’t, but instead because they don’t want to. Jobs wants to build quality products and sell them to punters who appreciate that quality.
Apple probably could easily make a $50 iPhone but it’d be crappy right? And they’d probably sell loads of units. But they’ve sold far more iPhones the way they have because they’ve built a high quality product. Users have seen that and that’s created excitement and buzz every time they’ve updated the device.
Do your customers buy from you because you offer amazing quality? Are they repeatedly coming back because what you offer they can’t get from another vendor or service provider?
Yes, selling at a higher price point will mean some people simply can’t afford what you offer. But if what you offer is stunning, most people will find a way to pay for it. They do it all the time for Apple stuff, why not yours?
Our local library had a refit last year. A load of builders and architects were asked to submit plans. After a few weeks the council picked the winning solution and who had they picked for this new, two floor construction? The best? The most stunning? The builders with the best reputation? No. The cheapest.
The new refit project for our local library was given out to the lowest bidder. Now I don’t know if you’re like me but I’d rather not climb a set of stairs made and built by the person who offered the lowest amount to do the job. Makes me kinda doubt the quality of the craftsmanship.
Are you offering the lowest price in your market place? Are you undercutting your competitors just to make the sale?
What appeals to you most for your business? Being the cheapest or being the best? Now I’m not saying that you need to be the Ferrari of your market but do you really want to be that company who’s renown for their stuff falling apart. You can think of a few companies right off the bat like that I’m sure but do you want that kind of tag for your business?
Deciding on your prices is tough. I know because I struggled with the same decision myself when I was working out the prices for my coaching products. I could have gone in at the lower end of the market to get lots and lots of clients who could easily find the cash. But I didn’t. I decided to set my price in line with other coaches who I really respect because I believe my time is worth as much as theirs. Sure, that might well wipe a lot of people out so they can’t afford to work with me but I think my time is that valuable to people.
So where do you sit on this? Low Cost or High Quality?