Compete on Value, Not Price

Originally posted on the Inc. website by Vanessa Merit Nornberg, excerpts below:

More than ever before, customers are choosing to buy from a company not just because it offers a product with a fair price, but also because that company has good values. This is an important market shift and a powerful opportunity for small businesses and start-ups, which often have strong value systems. Companies with values that match those held by their clients benefit from fierce customer loyalty, and have the possibility to help customers to not only feel satisfied with the product they have purchased, but also to feel positive about the way in which they spent their money. Here’s three ways the price-to-value shift matters for your company:

The lowest price does not always mean the best value.

Many companies, and especially large ones, mistakenly operate as though the lowest price is always the most important factor in a customer’s purchasing decision. Even if this may be the case sometimes, many other factors play roles that are as important or even more so in a buyer’s choice.

Nothing compares to putting customers first.

One of the clearest disconnects between companies and customers is the choice to substitute technology and efficiency for customer experience and comfort.

Consistency is king.

Consistency says volumes about your company. Frequently-changing pricing structures makes it hard for buyers to calculate their true expenses–and, in wholesale–to price to sell accordingly. At the same time, receiving half-full orders is detrimental to business, too. Customers are left wondering why they did not receive what was offered, and also how they can trust your company to deliver correctly in the future.

Customers are much more than one-dimensional money savers. They want to do business with suppliers who not only serve their needs, by also match their values.

Click HERE to read the entire article from the Inc. website.