Firstly, notice that clever wording: Undersold, not under priced. But actually the whole wording is incredibly clever – it acknowledges straight away that things may be different elsewhere, but just that you might not be aware of it. (An excerpt from articles in Bang Consulting blog).
Should we be selling ourselves on price?
The resounding answer is no!
There will always be someone who is willing to undercut you.
Why would you want to promote your business on the back of giving the lowest price? Surely that devalues what you have to offer? And by cutting your profit margins so low you barely break even you create all sorts of other challenges for your business – not least of all paying yourself a wage!
In the meantime think what is really different about your business, because people very rarely buy based on price alone.
Don’t ask the price
But what about pricing? Well, granted, there are likely to be areas within your store where customers may compare favorably with other retail groups, and that they are happy to price match if you do find items cheaper elsewhere. But that’s not really the reason customers choose to shop at your store. It’s about the customer service and the experience of buying from you.
Your staff should have a vested interest in getting it right for customers. They must learn about the products they sell, they need to offer extended guarantees, free delivery on many products and work hard to make the customer experience a good one.
Of course, they don’t always get it right, but that’s true of any retail experience. But it is that experience that the customer is buying – even if they are on occasion paying slightly more for it.
So by comparing yourself to your cheapest competitor aren’t you underselling yourself? Instead of worrying about matching the price, how about bettering the customer experience? I believe that will win you loyal customers and raving fans, something the cheapest business can rarely claim.
Read more :
- 6 Smart Ways to Deal With Your Competitors (grasshopper.com)
- Best Buy’s new customer satisfaction survey shows no respect for customers (customerthink.com)
- How to Build a Connected Brand through a Better Customer Experience (greatfinds.icrossing.com)
- Lessons in Customer Experience From a Hair Salon (customerthink.com)