Marketing

When Business Gets Bloody

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“There is nothing to writing. All you do is sit down at a typewriter and bleed.” ~ Ernest Hemingway

Writing was Hemingway’s profession. All he had to do to reach legendary status as a writer was bleed.

I don’t know what success looks like for you. I assume (which is usually a dumb thing to do) that you want to build a solid, profitable business, provide for your loved ones, gain the respect of your peers and attain some level of freedom. Maybe you hope to reach legendary status in your profession.

Take heed to Hemingway’s advice. All you have to do is approach your business or career with a willingness to bleed.

Pouring Out You

As a small business owner or solo professional, you probably know exactly what Hemingway means in the quote above. Your business is an extension of yourself. Day after day, you pour yourself into it. You’re committed to its protection and growth.

In many ways, identifying yourself so closely with your business makes you vulnerable. At the same time, that vulnerability also makes your business appealing:

Your values shine forth. The things that are important to you are the driving force behind the decisions you make. You’re willing to take a courageous stand for what you believe in, even when it doesn’t conform to the industry standards. This can have a polarizing effect; some people will love you and some will hate you. People who share your values and beliefs are more likely to become loyal customers and enthusiastic supporters than they would be if you “played it safe.”

Your “brand” is authentic. What the public sees is what it gets. And what they see is the real you — in the form of a product- or service-providing business. More than ever, consumers are looking for transparent brands to buy from. More than ever, inauthentic brands are shown for what they really are: hucksters more concerned with turning a profit than serving their customers.

It’s hard to connect emotionally (remember: emotion is critical to every purchasing decision) with brands that don’t seem authentic.

Your message has personality. Generic marketing stinks. Personality and uniqueness of voice will make it easier for your business to stand out from the robotic sounds of the boring majority. Your distinct voice will be more attractive to the customers you want to do business with most; your personality demonstrates that you’re one of them! You “get” them! The bond you form can be deeper, i.e., more personal, than anything that can be achieved with pricing or even product specs. I always refer to Apple because they’re a great example of this principle.

Your hard work pays off. If success is 1% inspiration and 99% perspiration, how can you win without a willingness to bleed?

Not everyone who bleeds succeeds. But blood-letting usually precedes success.

Disclaimer: Pouring yourself into your business is no guarantee that you’ll succeed financially. It doesn’t even mean you’ll be fulfilled emotionally. All it guarantees is that you’re more likely to connect with the people you want to serve, partner with those closely aligned with where you are, and that if you do succeed, it will be on your terms, not someone else’s.

Good stuff from around the Web
Brand Your Business with Genesis Storytelling: Great 6-minute video from Tom Wanek on telling the “genesis story” behind your business

What Your Client Really Means by Price Objecting: “Your client just told you that they’re not interested in dealing with you, at least not on this subject. That’s not a price problem, that’s a relationship problem. And that’s a big deal.” Charlie Green tells us what’s really going on when a customer says “It costs too much.”

The Truth About Recycled Ads and Pickup Lines: What happens when you try to pour someone else’s blood into your marketing. Or dating. Great illustration from Chuck McKay.

Leadership: Burden or Blessing?

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People generally don’t like feel like they’re being bossed around. But people need to be led. They crave it.

When we’re overwhelmed by options and inundated with information, we seek someone to clear away the clutter and noise for us. Or, where there’s not enough information, we search for people we can trust to guide us where we’re unable to find our way.

Leaders create a vision for the future. They inspire others and give them courage to move forward. They know (or at least seem to know) a little more than the rest of us and provide lantern-light so we can follow their path.

You should start thinking about your business in terms of leadership. Your customers and prospects are looking for someone to help them do something. The person or business which can eliminate the risk they’re facing, help them make tough decisions with confidence and show them the best path to take will gain unconquerable loyalty from those whom they serve.

The kind of leadership I’m talking about is based on just that: serving people. You’re leading them because you care. Leading because you can honestly help. Believe it or not, making their best interests your priority will pay off for you. As the late Zig Ziglar said,

“You can get everything in life you want if you will just help enough other people get what they want.”

The concept of leadership has constantly pressed its weight on my thinking for the past 2 years.

I believe more than ever that your commitment to leadership is critical to reaching the greatest level of success your business is capable of attaining. It doesn’t matter what business you’re in. It doesn’t even matter if you don’t have any employees. If you have customers, or if you want customers, you have to start thinking like a leader.

You have to have courage…
…to make tough choices for yourself and your following
…to tell the truth, even when it’s uncomfortable.

You have to take responsibility…
…to generate results and help clients get them, too
…to find and share the best information, systems, tools, etc.
…to help those you lead convert that information into action

You have to provide clarity
…create vision
…connect the dots
…instill confidence
…inspire action
…lead the way.

Who are you leading? Who do you want to lead? How are you going to get there ? If you don’t have a plan, it’s time to get started on one.

Hanging Out With Jeff Zelaya

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Jeff Zelaya's Google Hangout with Copywriter Donnie Bryant

It’s not often that you’ll catch me on camera; I have an irrational fear of leaving photographic evidence of my whereabouts and activities… (I’m just kidding)

But for my buddy Jeff Zelaya, I made an exception. We spent about half an hour on a Google Hangout talking about copywriting,  marketing and being self-employed. Fun times for everyone. Now I’d like to share the fun with you.

You could check out the video on Jeff’s fantastic marketing blog, where he says some very nice things about me (check’s in the mail, Jeff). There’s also tons of other great content, including Hangouts with other smart people. But for simplicity’s sake, I’ll embed the video right here:

Now, one of the nice things Jeff says about me on his blog is about how cute my 4 children are. He’s telling the truth, of course. And he knows cuteness when he sees it. Have you seen how adorable his son Elijah is?

Elijah

 P.S. If you enjoyed this, there’s a good chance you’ll get something out of my recent interview with Steve Lahey.

Writing Copy to Sell Your “Crazy” Offer

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Yesterday we talked about turning your prospects into paying customers by making crazy offers. Did this concept haunt you the way it’s been haunting me? I hope you spent a good deal of time coming up with an almost too-good-to-be-true offer you can use to move potential clients from interest into action.

Ideally, you will come up with an offer so crazy, so compelling that you don’t need much sales copy (or pitching if you’re selling in person or over the phone). Start with a winning product or service and create a very valuable offer and you’re already most of the way there. Now the copy has an easy job. (Confidentially, this is one of the big reasons copywriters are picky about which projects they work on.)

But no matter how strong your offer is, you should still…

…Sell the Heck Out of It Anyway

Even though making the right offer to the right prospect is 80% of the battle, persuasively-written sales copy can improve response by 10, 100 or 1000%.

Here are 4 qualities that will add extra oomph to your copy:

Identification

Your message should aim for the heart of who your target customer is and how he sees himself.

Nike could talk about comfort, but their customers are athletes concerned with performance, so that’s what their marketing highlights. Lexus could talk about performance, but Lexus buyers are thinking about status. That’s what they showcase in their ads.

What causes one person’s heart to race may not excite the next person at all. Know your customers. Write copy that appeals to their sense of who they are and who they want to be.

Clarity/Specificity

Don’t be the least bit vague about what you’re offering. Tell them exactly what they’ll get, how long it’s available for, how they’ll benefit from their purchase, what to expect next, etc. Clarity creates vision; without vision there is no action. On the other hand, confused people generally don’t buy.

Bold Claims

The idea of under-promising and over-delivering seems to make sense, but it can be suicidal when it comes to marketing. These days, with so many sales messages begging for our attention, you can’t afford to be shy.

Don’t be afraid to make big claims, as long as you can back them up.

People are searching for the best answers to their questions, the best solutions to their problems. Imagine a dentist who marketed his services as getting your teeth “pretty clean.” How long will he be in business? Even if he’s the best dentist in town, marketing like that will ruin him.

Sincerity

Skepticism is at an all-time high. So is the volume of hype-filled sales pitches we see and hear every day. People are looking for providers they can trust. Any hint of dishonesty or shadiness will send most potential buyers running.

Sincerity is like a breath of fresh air. Almost no one is using it.

The less you seem to hype up what you’re doing, the more believable you are. You come across as honest and helpful instead of desperate and opportunistic.

Your Action Steps

1) If you haven’t come up with it yet, keep working on your crazy offer.

2) Write the first draft of your sales copy ASAP.

3) Test out your offer. Don’t be scared.

If I’ve ever shared anything on this blog that I think you should act on right away, this is it. Don’t let another day go by without considering the immediate and long-term effects this “crazy offer” concept can have on your business.

And get moving!

The Business Growth Question I Can’t Get Out of My Mind

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Robert said something a few weeks ago that has been ringing in my ears ever since it rolled off his lips. He has no idea it’s had such a lasting –almost haunting– effect on me. Maybe I should call him and let him know.

“Have you ever offered anything crazy get people onto your buyer’s list?”

He posed the question to about a dozen bright entrepreneurial minds during our mastermind group call. As I recall, only one or two of us came up with a response.

For the record, Robert Michon is a very smart marketer, so his inquiry comes loaded with knowledge, experience and an ever-present curiosity.

This is an idea we all understand, but most of us don’t do it. Or we don’t take it as far as we should. For whatever reason, we never cross the border into “crazy.”

When You Understand This, You Understand How Direct Marketing Really Works

You hear a lot of talk these days about building your email list, and that’s a good thing. But there is a fundamental difference between people who subscribed to your list to get something for free and paying customers. Understanding the difference and focusing on it appropriately will virtually guarantee increased conversion rates, sales and profits.

The best new customer is a satisfied old customer. The second best customer is one referred by a satisfied old customer. The best prospects to buy your higher-end product or service are satisfied buyers of your less expensive offers (all things being equal).

This idea reminds me of a lesson I learned from Richard Armstrong, direct marketing veteran and AWAI Copywriter of the Year for 2012. In chapter 11 of his book My First 40 Years in Junk Mail, he shares the story of his time working with the legendary Dick Benson. The takeaways are golden. Stealing from pages 56-57:

“Oh, let me tell you one other little secret I learned from Dick Benson. Now that he’s passed away, I can share this with you. Dick was never in the publishing business. He was in the list-building business!”He sold subscriptions to those newsletters for just ten dollars a year! In the process, they became the most widely-circulated newsletters in America… But Dick didn’t really give a damn about the newsletters… All Dick cared about was the lists. In other words, he literally gave away the newsletters in order to build up gigantic mailing lists of subscribers…

“When you understand why he did that, you understand how direct marketing really works.”

I can’t recommend Richard’s book strongly enough. Grab a free copy here.

How Does That Impact Your Business?

A significant psychological shift takes place when someone gives you money. If you’ve been in business, either as an owner or an employee, you know there’s a huge difference between a customer and a tire-kicker. Rather than being passive about the process, be proactive. Don’t sit and wait for prospects turn into buyers. Consider making a “crazy” offer, one that’s harder to turn down than to buy. You’ll jumpstart that psychological shift in those individuals, and that begins what will hopefully be a long-term, mutually beneficial relationship.

Either that or you’ll find out that those 1) prospects aren’t as hot as you thought they were, 2) your offer wasn’t crazy enough or 3) your potential buyers don’t see your product as solving their problems or enhancing their lives. No matter what, you’re learning something that you can use to make improvements.

Any type of business can put this idea into practice. A little creative thinking and some courage can make this experiment wildly successful.

I’ve talked before about how Gillette sent me a Mach 3 razor in the mail for my 18th birthday.  Some businesses would be too scared to go that far. It’s crazy, especially since the only thing they knew about me was that I turned 18 on November 2. But their small investment (probably no more than $5) secured my loyalty as a customer for over a decade. I’m in my 30s and I still use the very same razor they sent me. When I need replacement blades, there’s no question who gets my money.

Do you see how this could change the way you do business?

Your Action Steps

1) If you’re not already doing it, start collecting a customer database. Be as detailed as you can. This is a separate list from your general mailing lists.

2) Come up with a hard-to-resist introductory offer and give your prospects compelling reasons to buy. Not just opt-in, but actually send you money. You might be surprised by the difference between $1 customers and free newsletter subscribers.

3) No matter what price point you pick, over-deliver. Give more value than the customer expected.

4) Create back-end offers. Dream up ways to offer targeted products and services (your own and those of other providers you trust) to your customer lists. This is the Dick Benson secret.

5) Test different offers to convert the prospects who didn’t respond to previous offers. Measure results.
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I hope Robert’s “crazy offer” question is burning in your mind the ways it burns in mine. One of the reasons it affects me so much is that I know I could go much further into “crazy” in my own business. But more than that, I know this concept can have a huge impact on your business.

I hope this article provides the spark that gets you to take action on this idea.

4 Steps to No-Brainer Status

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If your target market had to make an instant decision, without thinking, would they would still pick you?

The mind is always doing something, always focusing on something. We even dream while we’re sleeping. Your brain never really stops working.

My fellow Chicagoan James Ford taught me a very interesting lesson (inadvertently, through the radio). He pointed out that we often look for distractions to give our minds a break. We call that amusement. A-muse-ment is, literally, the act or state of not-thinking.

While I generally discourage the use of funny marketing messages, you should consider being appropriately amusing.

With that in mind, here are some amusing marketing ideas:

1) Make your offer a “no-brainer.” If your offer is just right, the prospect literally doesn’t have to think about it.

It’s not good enough to have the best product on the market or to be the most logical choice as a service provider.

Plenty of outstanding businesses struggle while waiting for the world to beat a path to their door to buy their better “mousetrap.” Marketing is still critically important, and the message it conveys must still engage the motivational drives and desires of the target audience.

There are several factors involved here. No matter how much a prospect wants what you sell, there are obstacles to overcome:

a) You have to be trustworthy. No doubt you’ve heard a lot of talk about getting potential clients to “know, like and trust” you. This is not only because we like to do business with people we like, but because we have a hard time doing business with people we don’t trust.

  • This is part of the reason marketers are enamored with social media, and it’s definitely the driving force behind Facebook Sponsored Stories and Google’s social search. You trust your friends, so when they “like” something, that something inherits some of that trust.

b) Your offer itself has to be credible. I imagine if you got a letter in the mail offering “Buy 1 Mercedes, Get 2 FREE.” It might grab your attention, but you’d dismiss the idea pretty quickly. We instinctively believe “if it’s too good to be true, it probably isn’t.”

By all means, make the strongest offer possible, but make sure it’s believable.

c) Eliminate as much risk as possible. The plumbing in my house is not great. At one point, we had to call a plumber every few weeks. When we finally found a guy we liked, one of the biggest reasons he got repeat business from us was because his 90-day guarantee. If the toilets clogged up in that time frame, he’d come out and fix it for free.

How strong is your guarantee? Do you provide excellent customer service after the sale? Do you share additional information or resources to ensure customers enjoy every possible benefit from their purchase?

  • Make testimonials prominent. This form of social proof can be effective at communicating the fact that lots of people just like the prospect has had a wonderful experience doing business with you. What more is there to think about?

2) Get to know your audience so well that you can describe their needs better than they can, using words they’d use themselves. When people feel like you know them, trust comes naturally. Add to that a comprehensive understanding of the challenges they’re facing and the dreams they have, there’s no need for them to look to anyone else when they’re ready to buy. Choosing you is a “no-brainer” decision.

3) Find a way to make buying from you habitual, or attach your offering to the habits of your target audience. That which people do habitually, they do unthinkingly. Here are two terrific articles explaining the power of habits and how they apply to marketing and buying decisions:

The Power of Habit
How Companies Learn Your Secrets

4) Your offer must be obviously valuable. The more clearly you describe what the customer will get after he buys, how wonderful his experience will be, the less he has to justify the purchase to himself. The less internal negotiations have to take place.
The longer he argues, the less likely he is to buy. He’s also more likely he is to either ask for a refund or suffer from buyer’s remorse – a serious problem for repeat business and referrals.

Your Action Steps

1) Get to know what you really sell. Homebuilders don’t sell structures; they provide safety, security, a feeling of family, the American dream, etc. Authors don’t sell ink on paper, but wild adventures and escapes from reality in packages that fit in the palm of your hand.

2) Get to know your prospects better than ever. Always remember, marketing is not about you – it’s about your would-be customers.

3) Speak to the soul. Go beyond having rebuttals for objections and answers for questions.

4) Work on ways to clearly communicate that the solution to your prospects innermost drives and desires is within their grasp – if they enter the door you show them. Help them see it.

5) Find effective ways to deliver that message.

This will take some work, but it will pay off in big ways.

All’s Fair When Avoiding Price Wars

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As a soldier, what main characteristic did David possess that allowed him to defeat Goliath, who was bigger, stronger and more heavily armed?

Most people will say that it was his agility or speed. Just moments before the battle, David decided against suiting up with King Saul’s armor to maintain his mobility.

More important than these things, though, was his willingness and ability to choose the terms of the fight. Even though he was very confident in his physical strength (he’d beaten wild lions and bears in the past), he picked up stones and decided to take out the giant from a distance. I’m inclined to believe David would still have been victorious over Goliath in hand-to-hand combat, but there was no need for that.

He took a weapon he was skilled with and slew the Philistine champion before the fight even began.

When your small businesses square off against entrenched competitors… ones that are bigger, stronger, better-known and better-equipped than you… you can learn a few things from the young warrior David.

Setting up Battles Where Your Victory Is Inevitable

There is a strong temptation for look at your potential customer base and think, “If I drop my prices, more people will buy from me. That’s what everyone else is doing.” In most businesses, special offers mean discounted prices. Every conceivable holiday is an excuse to offer a sale. And some of your big competitors spend thousands or even millions of dollars broadcasting these discounts.

How can you compete with that?

Make no mistake: low prices are attractive. There will always be a market for cheapness. That’s probably the biggest reason why a huge percentage of startups open their doors with plans to become the low-cost provider for the customers they’d like to serve.

But unless you have the buying power of Walmart or its equivalent in your industry, that’s a tough fight to win.

Take a page out of David’s book. Pick your battles strategically. What do you offer that’s better than everyone else who is competing for the customers you want?

Your lunch menu is healthier than McDonald’s.

Your plumbing work is guaranteed for twice as long as anyone else in town.

Your T-shirt brand has been worn by more rock musicians in concert than any other brand this year.

Force The Comparison

In general, you don’t want a potential customer to be able to make an “apples to apples” comparison between your product or service and that of the guy who insists on cutting his prices to the bone. All other things being equal, the customer will buy the less expensive option.

You can’t allow other things to be equal.

It’s essential that you create some differentiator that forces the consumer to make an “apples to orange” comparison.

Your marketing and your sales people force the comparison between your product and the competition at the point of differentiation.

“Look how healthy our lunch menu is!”

“No one guarantees their pipework for as long as we do.”

“If you’ve been to any concerts this year, you’ve noticed how popular our brand is with your favorite rock stars.”

Juxta-position your product in a way that appears unique, especially if your product or service is seen as a commodity.

Create Your Own Category

Have you ever noticed how many different choices are available for chicken eggs at your local grocery store? There are probably dozen options (yes, I thought that was funny).

What’s really interesting is the price difference between some of the choices. For example, your “average” large eggs sell for $1.79/dozen at this particular store. Eggland’s Best Vegetarian eggs normally sell for $3.79/dozen. That’s more than double the price of your “commodity” eggs.

egglands price wars

How does that happen?

Eggland’s Best has capitalized on a key differentiator. This type of egg is in a distinct category: cage-free, vegetarian brown chicken egg.

This destroys the “apples to apples” comparison and forces the customer to consider whether it’s more important for them to save a couple bucks or treat himself to this special kind of egg.

Dutch Farms (the Goliath in this example) probably sells a lot more eggs at the much lower price. But Eggland’s Best (David) is carving out a nice corner of the market to dominate.

Can you think of a way to create a special category for what you sell? 

The Low Cost Leader’s Precarious Position

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Competing on price is almost always a dumb idea. In every case I can think of, it makes more sense to differentiate in ways other than being the cheapest place in town.

I was given the opportunity to share some of my thoughts on the futility and danger of price competition (and the fear that causes business owners to adopt that kind of pricing strategy) over at the One Hour Startup blog. There are 3 articles; I hope you check them out. The feedback has been excellent.

[[ Update: The One Hour Startup blog is being merged with NinjaHobo. These articles are no longer hosted there. ]]

3 Alternatives to Competing on Price – What Dominoes Pizza, Babiators and iPhone lovers can teach us about staying out of the Bermuda Triangle of commoditization, where the only way to win is to be slash prices.

The Wife-Approved Pricing Strategy – If price is the main way to convince a would-be customer to buy, why do people regularly pay premium prices for some products? Here’s an example from my own wife. Oh, and Aston Martin.

Pick Your Battles Strategically, or All’s Fair When Avoiding Price Wars – “…what main characteristic did David possess that allowed him to defeat Goliath, who was bigger, stronger and more heavily armed? Most people will say that it was his agility or speed…More important than these things, though, was his willingness and ability to choose the terms of the fight…When your small businesses square off against entrenched competitors… ones that are bigger, stronger, better-known and better-equipped than you… you can learn a few things from the young warrior David.”

While we’re on the subject, observe Chuck McKay as he destroys the low-cost leader’s argument in 33 seconds:

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The Wife-Approved Pricing Strategy

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pricing strategy

In an age when customers research practically everything before they buy, when there are mobile apps that point people to retailers with the lowest prices on items, and brand loyalty seems at an all time low, how does a small business stay competitive without sacrificing profits?

I began answering this question in my previous post, 3 Ways to Avoid Competing on Price. I mentioned three specific ideas:

1. Making bigger, bolder promises — and backing them up
2. Work on your secret sauce. Do something no one else does or add a unique touch of excellence to the mundane (simply make what everyone takes for granted into an extraordinary experience)

3. Develop a killer value relationship with your customers. (Unique propositions are good; unique relationships are better.)

Smack dab in the middle of this conversation about pricing, my wife spent a good chunk of the day shopping.

And just like you’d expect from a good wife, she illustrated my point, albeit inadvertently, by spending over $100 on makeup. Check out the picture above.

I’m pretty sure Ulta Beauty and Sephora have higher profit margins than the average drug dealer. But, that’s where my wife shops.

She could save more than 50% by buying her cosmetics at the local beauty supply or even Walmart.

But when it comes to makeup, price is nowhere near the top of her priority list. She happily pays premium prices for higher quality and unique color palates.

The difficulty with building loyalty is a good point…in some circumstances.

But is Nike struggling to maintain its customer base? Or Apple? Or Coke? Granted, these are established market leaders and most of us are not.

There’s still something to learn from the big boys.

Inexpensive offers almost always draw attention.

But if your marketing message and positioning speak directly to the customers’ need in a way no one else speaks or solves a problem no one else is addressing, price comparison fades.

Have you ever noticed that Excedrin Extra Strength and Excedrin Migraine have IDENTICAL active ingredients in identical dosages?

But one is marketed as the solution to a specific pain. People will pay more for the confidence that comes with that kind of focus.

It isn’t necessarily an issue of loyalty. It’s Sales and Marketing 101: What’s In It For Me?

If your product or service provides a more satisfying answer to that question, you don’t have to stoop to charging lower prices than everyone else.

If your marketing answers the WIIFM question by taking possession of prime real estate in your target audience’s mind, you don’t need to be the cheapest. You set the standard for your industry.

Harley-Davidson is THE definitive motorcycle; people who buy them generally don’t balk at the price.

Here are some fresh ideas to escape price competition:

Be a safe bet. Peace of mind is more valuable than most people realize. By eliminating the risks involved with purchasing your product, you free up some of your customer’s mental and emotional bandwidth. Knowing that they’re not going to get “burned” is worth paying higher price for. Testimonials, social proof, strong guarantees and proven support after the sale make reduce risk and make it easy to buy from you, even if you’re the more expensive option.

Focus on a tight niche, like Excedrin Migraine.  A specific solution to a specific problem is always perceived as more valuable than a generic solution to a generic problem. The more painful the problem, the more desperate the desire, the more it’s worth paying someone to scratch right where it itches.

Tell a fascinating story about the origins of the product or the company. Many times customers buy your product because of the “why” that drives your business.

Associate your product with a cause bigger than a simple purchase. Breast Cancer Awareness, Boxtops 4 Schools, and even Made in America are all appeals that attract certain types of people. Become an advocate for causes your target market supports and believes in.

Stop trying to sell to price-shoppers. Charge more and be unapologetic about it. Your product or service is for an elite class of clients.  For example, consider the curious case of the Aston Martin Cygnet from Forbes Magazine:

Take, for instance, the tiny European city runabout known as the Aston Martin Cygnet. In its most basic version it sells at more than $45,000. The car is actually made by Toyota and a Toyota version (identical except for some interior accoutrements) can be had for less than $17,000. On an apples-to-apples comparison, Which? (a London-based consumer magazine) reckons the average price discrepancy is more than $31,000. Thus those who prefer Aston Martin’s badge pay an outrageous three times more for exactly the same Toyota engineering!

Is that crazy? Not at all. The social and psychological benefits of owning an Aston Martin outweigh the difference in price for some buyers.

That’s reality. Someone is going to tap into it. Might as well be you.

3 Alternatives to Competing on Price

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price war

How often do we see businesses small and large making the claim that they offer “the best value in town”?

And why is it that people assume that such a statement means that “best value” is the lowest price?

In the strictest sense, value has nothing to do with price.

A $100 bill is valued at $100 no matter how many hours you worked to get it.

On the other hand, an icy cool glass of lemonade is more valuable to a man mowing the lawn in the summer than one sitting on a bus stop in the middle of winter, even if it costs $2 in both cases.

Being the “low price leader” doesn’t (necessarily) mean your customers are getting the best value; it just means they’re paying less than they are anywhere else.

That usually makes you the lowest paid provider in your field.

I don’t know about you, but that’s not a position I’m in a hurry to occupy.

Avoid Price Wars at Any Cost

Price is not the true battlefield – or if nothing else, it’s not the one you want to fight on.

As a fun illustration, I’d like to point you to the legendary Elwood City snow shoveling war between Arthur Read and Buster Bunny.

The entire video is enjoyable, but the business-related part really starts about five minutes in, with key takeaways at about 7:20 and 8:20.

~ “He’d be crazy to compete with me at this price.”

~ “You won’t make any money that way.”

You might put a hurting on the other guy, but you’ll probably cause irreparable damage to your own business in the process, just like Arthur and Buster did.

Your customers will get used to your bottom-basement pricing and your willingness to undercut the competition.

And even if you put the other guy out of business, what happens when a new competitor comes on the scene? It’s a perpetual race for the bottom.

What’s the Alternative?

The temptation to set your prices low is strong.

You constantly hear about people shopping at Walmart because they’re cheaper than pretty much every other store. Everyone seems to be running discount sales.

Besides, you might be thinking, what’s so special about product? There are half a dozen other vendors in my zip code alone doing the same thing as me. What’s unique about shoveling snow? Plumbing? Accounting?

Consider starting here:

1) Make bolder promises – and back them up. Most of your competitors advertise like cowards. They’re too scared to make big promises. They would rather “under-promise and over-deliver,” which is marketing suicide these days.

What’s the biggest promise you can honestly make? Wrap that up with a dominant emotion your audience is feeling and/or a powerful (true) story and shout it from the rooftops.

The gutsy promise “30 minutes or it’s free” put Domino’s on the map, even though there’s nothing special or particularly valuable about their pizza.

Never promise more than you can deliver, but don’t shoot yourself in the foot by under-promising either.

2) Develop a secret sauce. Even in a commoditized field, like plumbing or snow shoveling, there’s no reason you have to play by the rules everyone else abides by.

What’s stopping you from going the extra mile to provide an outstanding, memorable customer experience?

Ask your customers, or listen to other people talk about your field. What do they hate most?

What do they wish would happen that never does?

As a plumber, wouldn’t a butt-crack free guarantee be a welcome distinction?

Add on-time service and the promise to clean up all the mess before you leave, and you’ve got a major competitive advantage. People will pay more for that.

Babiators, a company that sells sunglasses for children offers the following, remarkable guarantee:

USP guarantee

As a father of four rambunctious kids, this is the sort of promise that captures my attention and makes me feel stupid for wasting my money anyplace else.

3) Work on your Unique Value Relationship. It’s really difficult to reduce relationships down to dollar amounts. Haven’t we all paid more to buy from someone we like or admire?

Haven’t we all decided to support businesses we know, even if the cost was a little higher?

When you treat you customers like people, not walking wallets, you have the potential to build relationships that remove price from the equation completely.

When they know, like and trust you, you win. When they identify themselves with your product, service or brand, when they see themselves as part of your tribe, paying less to work with outsiders isn’t even an option.

Just ask the next person you see with an iPhone 5.

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Be sure to check out the follow-up to this article, The Wife-Approved Pricing Strategy.