Do you remember playing Limbo when you were able to bend over backwards without creaking or breaking? The chant began quietly, “how low can you go?” and rose in volume until it filled the room or someone won the game.
Limbo is a great way to engage guests at a party, but it has no place in your marketing strategy. When the big boys start challenging you with price roll backs, it’s time for you to focus on value. There’s a difference.
Pricing strategies only work for companies with commodity items and the ability to leverage costs.
If you don’t have lower costs and higher volume, competing on price alone is unsustainable. You will fail.
There’s an old fashioned toy store in Asheville that I love to visit. A few of the items in the store can be found at Wal-Mart, Target, or Toys R Us where they have lower prices. All of the products can be found online at different price levels. But there is one thing at The Toy Box that adds value, personalized service.
If you are in a hurry, you can start with “I’m looking for a gift for a 9 year old boy.” A few questions later, you have the perfect gift. If you have some time, you can while away an afternoon looking at toys that bring back memories and make you wish you were a child again. (Don’t tell anybody, but I’ve bought a few of their toys for myself!)
There’s always a friendly welcome, helpful advice, and take your time attitude. Price isn’t as important when you feel that you are part of something bigger than a cash register.
If you know what your customers value, make sure that you provide it. Don’t be tempted by the big box companies ever falling prices to join in on the price game. You won’t win. Instead, use your size and ability to connect with your customers to keep them happy.