Comments on: Price vs Service http://www.twresourcegroup.com/price-vs-service/ Affordable Small Business Marketing Strategies Mon, 18 Jan 2010 16:55:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Toby http://www.twresourcegroup.com/price-vs-service/comment-page-1/#comment-2128 Toby Mon, 07 Apr 2008 23:03:42 +0000 http://www.twresourcegroup.com/2007/05/29/price-vs-service/#comment-2128 Exactly Aaron! Last night I had a conversation with a friend regarding gaining more business in a declining market. His solution was to undercut the competition and compete solely on price. My position is compete on value and level of service so people feel like they get more for their money. He couldn't get his mind around that competing on price is one strategy to target it a market segment and service and value are another. Reminds me of a business strategy course back in college. Exactly Aaron! Last night I had a conversation with a friend regarding gaining more business in a declining market.

His solution was to undercut the competition and compete solely on price. My position is compete on value and level of service so people feel like they get more for their money. He couldn’t get his mind around that competing on price is one strategy to target it a market segment and service and value are another.

Reminds me of a business strategy course back in college.

]]> By: Aaron Stanley http://www.twresourcegroup.com/price-vs-service/comment-page-1/#comment-1165 Aaron Stanley Thu, 27 Dec 2007 01:04:59 +0000 http://www.twresourcegroup.com/2007/05/29/price-vs-service/#comment-1165 This price issue trips up a lot of small business owners. The problem is, if you don't have a clear, compelling, well-articulated answer to the question, "Why should I do business with you versus any and all of the alternatives that are available to me?", then you'll be forced to compete on price...simply because people don't see or understand the added value. So there are two parts to this coin. Yes, there is a perception and psychology dependent on price. But it's also important to communicate very clearly what sets your offering apart, so you can justify that price. This price issue trips up a lot of small business owners. The problem is, if you don’t have a clear, compelling, well-articulated answer to the question, “Why should I do business with you versus any and all of the alternatives that are available to me?”, then you’ll be forced to compete on price…simply because people don’t see or understand the added value.

So there are two parts to this coin. Yes, there is a perception and psychology dependent on price. But it’s also important to communicate very clearly what sets your offering apart, so you can justify that price.

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