THE BLOG

2 ways to have the lowest priced product/service in your market.

Aug 03, 2022
Joseph Baker Blog

There are 2 ways to have the lowest priced product/service in your market. 

Scenario #1: Lower your price to a point where you are undercutting the competition. This option comes with consequences, however, since it is a race to the bottom. If you are competing on price, there will always be someone willing to do it "cheaper". And, ultimately, quality suffers, along with your bottom line.

Scenario #2: Increase the value of your product/service so much that when you sell it, it seems inexpensive. Clearly, this is the ideal path to take. What a better deal... creating so much value for your clients/customers that they HAVE to choose you! 

I was in the process of booking a client marketing consultation a few years ago...

As I pitched this very specific type of engagement to the client, I saw his eyes light-up, as he clearly understood the value of my offer. He said, "Great! How much is it?" ... I quoted him $1,500, and, his response was "Great! Let's do it."

Now, I could have tried to gauge the market and "come-in low" on price, just in case he had other marketers courting him, etc. However, the better approach was to present so much value, that my consultation was the obvious choice. 

Side note: I went on to secure a retainer with his company for 2 years at several thousand dollars per month. The initial consultation led to a larger opportunity as I continued to pile-on value.

If you're an entrepreneur or business owner, your best play is position yourself as the MOST VALUABLE option in the market. This will allow you to offer upper market-rate (or, even premium) pricing, which serves you and your clients/customers, the best.

Joseph