When it comes to your products or services, do you know what sort of value you are offering your customers? If you’ve placed your chips in the ‘best value’ arena, a very competitive price will have a starring role in your value proposition.   Your customers are likely to be very sensitive on how much they spend, and want the absolute best deal on offer.  As a business proposition, this works well if you’re: Large enough to deliver ‘economies of scale’ so your price is keener than anyone else in the marketplace. In the UK, Weatherspoons Pubs is one of the best examples of a business offering a better price on a pint than practically any other pub chain. You’re one of the first to market and can offer best value at this point in time. Option A can be sustained if you’re a big player with deep pockets.  But Option B immediately loses its advantage as soon as new competitors come in offering a cheaper price. And of course, there will always be rival businesses who undercut … [Read more...]

When it comes to your products or services, do you know what sort of value you are offering your customers? If you’ve placed your chips in the ‘best value’ arena, a very competitive price will have a starring role in your value proposition.   Your customers are likely to be very sensitive on how much they spend, and want the absolute best deal on offer.  As a business proposition, this works well if you’re: Large enough to deliver ‘economies of scale’ so your price is keener than anyone else in the marketplace. In the UK, Weatherspoons Pubs is one of the best examples of a business offering a better price on a pint than practically any other pub chain. You’re one of the first to market and can offer best value at this point in time. Option A can be sustained if you’re a big player with deep pockets.  But Option B immediately loses its advantage as soon as new competitors come in offering a cheaper price. And of course, there will always be rival businesses who undercut … [Read more...]