“Stop paying lower prices today?”
“Did I read that right?” you say.
“Why would I not pay the lowest price I can find?”
The race to the bottom is a very real and scary idea that we are experiencing now more then ever. Everyone is trying to beat the next competitor with lower and lower prices and at some point it will hit its breaking point.
Now of course the situation isn’t that dire, but it is becoming common practice that the lowest price is one of the deciding factors when choosing a service professional. With the advent of the internet it is even easier now to shop around and find businesses that will undercut the previous offer to win the bid.
This post is the first in a series of posts I like to call “The Today Collection”, in which I will be outlining things you can do today, before you go to sleep, to help change your mindset and bring value to your life or business.
FINDING THE BEST PRICE OVER THE LOWEST PRICE.
Now we need to make a distinction between the Best Price and Lowest Price.
Lowest Price is the minimal value you can find on a product or service that is chosen based on the core features that you are looking for. No considerations are taken into place about the quality or value you receive. It is a 1 to 1 transaction between you and the other party.
Best Price on the other hand takes in to consideration many factors to rank it on the scale of perceived value. In this instance the change in value is swayed in your favor.
The extra value you receive may include;
- The quality of the product or service
- Customer support
- Extra features or bonuses
- A better overall experience
In essence, you are receiving more value then you are paying for.
Sally hires a cleaning technician to do the average home clean that includes the basic service list of kitchen, bathroom, bedrooms and living room. While on site the technician notices the kitchen appliances are made out of stainless steel and are tarnishing from age.
Even though its not part of the service, the technician uses a stainless steel oil solution to clean all the stainless steel surfaces removing any tarnished areas and buffs them to a mirror shine. Before leaving the property he leaves a little bottle of this stainless steel cleaner with his Thank you note on the kitchen table so Sally can maintain and keep her stainless steel appliances shiny and tarnish free.
Sally’s experience with this cleaning technician will be memorable. The value she received was more then her investment in the cleaning and if she went with another company for the cheaper price, the attention to detail wouldn’t be there.
THE EFFECTS ON SMALL BUSINESS
In our current economic climate, it is important to keep in mind that people are starting to struggle. Smaller businesses are not able to compete with individuals who are offering services or products for near to no profit.
Now, the answer to smaller businesses is to change what they are doing. They need to evolve as the market evolves; after all its the market that decides what they are willing to pay. Businesses have to make themselves stand out with their work and offering, but the problem at hand is that the market losing focus on what value you and in turn they are robbing themselves of the experience and value you could be receiving.. all to save a few dollars.
FACEBOOK COMMUNITY FORUMS
Facebook classified groups are a great way to buy and sell used or new products to people in your local area. Although they may not have insurances that eBay provide when you receive a faulty or not-as-advertised item, they are easily to communicate with and can at times be more open as you can see the sellers Facebook Profile Page.
These forums also have become a free way to advertise your business, as people request services they need, and usually offers come by with incredibly low prices.
This may sound beneficial to some but you need to take into consideration some of the factors when choosing a low bid service on Facebook;
- Are they a qualified and registered business?
- If [NO] then are you risking your safety hiring a stranger off Facebook?
- if [NO] do they have insurances in-case something happens to you or your property?
- What sacrifices in quality are you losing in return for a low price?
These are some important questions you need to ask before sending that message to someone offering a low cost solution. Weigh out the Pros and Cons and find out what is the best value for you.
Don’t rob yourself of value. Focus on what will be the best option for you for the right price. You get what you pay for is a saying people use, and it couldn’t be more true…. and i think its time we all brought in value into our lives.
Do you think people have lost focus on quality and value over price? Have you seen or personally had a bad experience due to choosing cheap prices?
Stay tuned so you don’t miss out when new articles in The Today Collection are released.