Simon Kucher & Partners did a study that found that a huge percentage of people thought that they were in a price war. But when you ask the people who thought they were in a price war, who started it. It was like 80% said the other guy started it.
Well, what does that say to me?
At least that says that people look at their competitors and say their competitors are competing on price, which means we probably have to do the same thing. We have to lower our prices if we expect to win any deals.
“Don’t compete on price, compete on value.” – Mark Stiving
But think about it for a second. Your competitor is watching your behaviors.
Remember that last deal that came in and the sales person said, ‘Hey, we really have to do a deep discount. Otherwise we’re going to lose this.’ And so we did a deep discount.
What is your competitor just see? They just saw you competing on price.
We often think our competitors are competing on price, where in truth, they’re thinking the exact same things we are.
How can we win more deals at higher prices? How can we change the conversation to value instead of price? So my recommendation is to focus much, much more on value than on price.
See, if we can win deals that way your competitors are trying to do the same.
We hope you enjoyed this podcast. If you see have any questions or feedback please email me email@example.com.
Now go make an impact.
Connect with Mark Stiving:
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