Do you own the patent on your product, service or process? If not, you are in danger of being “knocked off” by a competitor at some point. Chances are that they’ll charge less than you for what appears to be a similar offering.
In my January newsletter, I said
“…there’s really no way for products to be truly unique anymore — at least not for more than a few months. Companies that create technological advancements that customers will pay for usually see copycats coming up right behind them.
“So what do you do in an environment where your advantages can be ripped off so quickly?”
Have you seen those SodaStream commercials on the air recently? Seems like a cool product, right? As someone who knows very little about such things, I also thought it was pretty much a one-of-a-kind product.
Well, earlier this month, I saw knock-off Cuisinart version merchandised right next to the “name brand”…on the SodaStream-branded shelf display (complete with SodaStream video playing on a loop) — for $30 less. In a national retail chain.
I wish I could find the picture I snapped.
SodaStream spends $18 million/year in advertising (according to the most recent figure I could find), including buying for premium shelf space and an in-store video player, only to have Cuisinart undercut them on price and hijack customers at the moment of decision.
How do you think customers will react when they see a competitive product, which could be just as good, for nearly a quarter cheaper?
More importantly, can you see how this applies to your own business? Are you facing competitors who charge less than you? Does their mere existence cost you sales?
How can you protect yourself? Here are a few thoughts.
1) Have better, more resonant marketing. When potential customers form an emotional or mental bond with your product, service or more often your brand, they often look for you — not the other guy– when they’re ready to buy.
2) Offer an insane guarantee and/or service after the sale. Think LifeLock. They offer a $1 million guarantee if identity thieves get their hands on your information. (They’re a good example of strong marketing, too. Remember the commercial where the CEO broadcast his social security number?)
Service after the sale can set you apart from all of your peers. It’s a terrific way neutralize the fear that kills so many sales. When customers buy from anyone else, they’ll be all alone, trying to figure out how to set up, maintain and get the most from their purchase. You can make life easy for them by being there for them.
3) Does your product carry prestige, recognition or affiliation with some desirable group? Compare diamonds and moissanite. They look alike; some will even say that moissanite looks better than diamonds. But everyone knows which is a more desirable symbol.
4) Offer a bundle or bonus. The added value can make all the difference when it’s time to buy. Another idea would be to link your offering with a related product that would complement the purchase. Again, you’re making the consumers life better and easier than it would be if they dealt with the competition.
5) Create implicit doubt in the quality of the competitive service. Be sure to do this carefully and with class.
You could say something like this: “Plumbers at Acme are the only ones certified by the Illinois Board of Health for contamination-free work in residential and commercial buildings.” That means anyone else could be leaving dangerous germs all around your house. How much more would homeowners be willing to pay to protect their family’s safety?
Don’t attack anyone when you’re using a tactic like this, and always be 100% honest.
If you need some help crafting and implementing your own uniqueness, USP Made Easy may be exactly what you’re looking for.