If there’s one thing that chaps my hide the most about most businesses it’s when these well-meaning owners, in poor judgment, decide to compete on price.
Often times the ill logic is accompanied by statements like…
– “there’s four other businesses just like mine within five miles of me who charge less”
– “yeah but the economy in my area is different”
– “people here have no money”
– “there are two big box stores that charge less and I can’t compete with them”
– “you don’t understand, my circumstances are different”
These are limiting beliefs of the lazy and undetermined.
When you compete on price, there’s always going to be a competitor that is willing to go broke before you.
The worst thing you can do in your business is get sucked into the “low price” battle with your competitors.
Doing so is the fastest way to go broke.
No one wins.
Not your clients.
Not your competitors.
All it takes is three simple things to pre-condition your community that you’re different, better, and far superior than all other options available to them.
I’ll tell you what those three things are in just a moment.
See, people only shop on price when they’re uncertain and apprehensive about the service.
If your entire community knew without a shadow of a doubt that you’re the best option in town and that your programs, products, or services constantly and consistently produce happier customers – would you ever have to compete on price?
Think about all the times you’ve paid more than you normally would have for something because you were convinced that it was of higher quality and of better value.
People happily pay more for what they feel is of higher value and superior quality all the time. For example, you’ve probably paid more for:
Organic vs. traditional fruits and vegetables
Grass fed vs. corn fed beef
Free range vs. caged chicken and eggs
All-natural almond butter vs. national brand peanut butter
BMW and Mercedes vs. Ford, Chevy, or Toyota
MAC vs. Maybelline
Rolex vs. Nixon
Gray Goose vs. Absolute
So what do MAC, Rolex, BMW, organic, natural, free range, Mercedes, grass fed and Gray Goose all have in common?
They are recognized as best in class.
Price is never a factor when buying these products and brands.
They’ve become competition proof and are in “a category of one”.
Fortunately, you can do this with your personal training or boot camp programs, too.
You can (and should) convince your market that you are their only real choice as it relates to your industry.
Eliminating apprehension and uncertainty within a prospect comes down to pre-conditioning prospects.
Pre-conditioning simply means being known for something… or in this case for a few things, such as…
…establishing your image
…building up your reputation
…creating credibility, trust, and authority
Pre-conditioned prospects come to you pre-qualified, ready to buy, and with little or no resistance. There are many ways to pre-condition your market, and here are three of them.
1. Publish case studies.
Case studies can be done on your website and blog, in print, and in emails.
Case studies are success stories that you share with your prospects showcasing how happy one of your clients was after purchasing your products or services.
The best case studies are not “pitch” driven but are story driven where you demonstrate how your product or service was the solution to your client’s biggest frustrations.
2. Demonstrate social proof.
Include testimonials in video, print, along with before and after picture in ALL of your marketing material…
… on your website, postcards, framed on the walls of your facility, in print ads and even on your business cards.
And not just one or two testimonials, either… but a near endless array of success stories and social proof so that anyone who sees your site, ads, and other marketing material can easily see that you repeatedly create happy customers.
3. Send a “Shock and awe” package.
Send an unexpected and meaningful gift when someone joins your program.
Price, cost, money should never be the deciding factor whether or not a prospect will become a client or not.
As Dan Kennedy once wrote, “The rules remain: If you want money, it’s a good idea to place yourself where there is plenty – and if you present someone with the ability to spend something they very much want or need, and secure their trust, they’ll hand you their money. You need to create your own economy via relationship with a “prime herd” that is not affected by overall economy. Be careful of devoting excess attention to product or media or technology, and not enough to ‘prime herd’. Ultimately the financial facts of your life will be more governed by who you sell to and the nature of the relationship you have with them.”
It all starts with pre-conditioning your prospect to understand that you are the premium option in your industry. Do that, and selling will become easier without resorting to cutting prices.
Don’t compete on price.
Don’t be willing to go broke.
You’re worth so much more.[Ed Note: Bedros Keuilian is the embodiment of the American Dream. Arriving in the United States from the communist Soviet Union back in 1980, his family went from being broke to eventually adding value to their new community. Today, Bedros helps over 45,000 fitness experts grow their businesses. Bedros knows the American Dream is NOT dead, because he is living it right now. So are the folks in this inspiring video – watch it now. ]