The first thing that most people associate with competition and marketing is price. That’s because they think that price is the most important factor for customers in a buying decision. Well the truth is just the opposite.
Let’s look at a business which
a) Believes price to be the most important factor
b) Aims to give the best price possible to its customers.
What would that best price be? It will be equal to the cost.
Simply speaking, if someone in the market place sells at cost no one else could beat them and they will rule the market. Unless you plan to sell below cost 😉
Now let me clear the myth first…
Do you drive the cheapest car?
Do you wear the cheapest clothes?
See!! Price is the least important (and let me say it, the last) factor in a buying decision.
If price was the most important factor for a customer, then they will all buy the cheapest available option. But they don’t.
People want the best value. They buy want fulfills their ambitions, dreams, pride, social status. These are all emotions. People base their decisions on emotions and not price. If you trigger their emotions correctly and at RIGHT PRICE, they will buy.
So the next time you think of price, think of emotional value you deliver and not the actual money value.