Most of these stores are "middle-of-the-road" retailers, and you know what happens if you stand in the middle of the road.
You can make good money by selling on price in only two instances:
- You're the low-cost provider.
- You're the highest-priced provider.
Being the second-cheapest provider means nothing to bargain shoppers, and there will always be an affluent client base who only wants to buy the most expensive on the market so they can brag.
So raise your prices, but understand how to articulate why you're worth more.
But Wes, if I raise my prices, I'll lose customers."
You'll probably lose some, but let's take a closer look.
Let's say you DOUBLE your prices and lose HALF of your customers.
Would that be a good thing or a bad thing?
Wes that would be horrible! I'd have 50% fewer people to serve and upsell and gather referrals and testimonials!"
Let's look at this another way: if you double your prices and lose half of your clients, you'd be making the same amount of money while working half as hard.
Wouldn't you call that a win?
What would you do with that extra time?
Might I recommend:
- Take a nap.
- Start training in Brazilian Jiu-Jitsu.
- Sleep in.
- Set bigger goals.
- Take another nap.
- Write a book.
- Provide even better service to loyal clients who appreciate your value to perfect the "E: Endear" part of The A.B.C.D.E. Sales & Marketing System™.
How To Be The Low-Cost Provider
However, a new client of mine has mastered the art of selling with a "low price guarantee" and is thriving.
Like I do with new clients, together we completed a detailed review of his business, including his inbound marketing, PPC strategy, and sales processes, to help me get up to speed on his successes, struggles, and goals while also getting him to look closely at his business for the first time in years.
In reviewing his lead-generation strategy, he wanted to focus on the "Request A Quote" lead-generation tactic that he felt was ideal for his sales goals.
But as we looked at his website, his #1 lead-generation tool was nowhere to be found on his homepage.
Visitors had to diligently click around his entire site to find his big, blue, beautiful "Request A Quote" button, but he was losing a lot of traffic—and sales—because of this glaring oversight.
If your claim to fame is your "lowest price guarantee," make it easy and obvious for your visitors to know how to give you money.
While Apple refuses to participate in the race to the bottom in the price wars, look at how easy and obvious it is to buy the new MacBook Air 15"...
Once you click through, it is easy and obvious how you "Continue" with your purchase...
Follow Apple's lead.
Make it easy for your prospects and clients to:
- Find you.
- Understand what you offer.
- Take you up on your offer.
Sure, you may have a patented 79-step process that kicks the snot out of the competition, but your messaging better be simple, obvious, and actionable. (Remember the motto from Canon, "So advanced...it's simple.")
How simply-advanced is your marketing and sales process?
How strong is your offer? (Great offers > Great headlines + Great copywriting...but having them all ensures you'll remain #1 for as long as you're in business.)
If you've perfected your buyer personas...
If you've perfected your offer...
If you've written great headlines...
If you've created riveting copy...
If you've created a clear call to action...(because if there is no call to action, no action will be taken.)
Then you can sell high or low and come out on top.
Market like you mean it.
Now go sell something.