The Fallacy of “Quality” MARKETPLACE Magazine October 4, 2005 Everyone claims to have good quality and fair prices. Why is it then that it is so difficult to get a good price for your product or service? If your product or service is so good shouldn’t people be willing to pay more for it? The problem is the competitor down the street has a product that is every bit as good or better than yours and they are willing to sell it for the same price or less. How then can you ever expect to raise your prices so you can make some real money? The answer is not in just finding consumer wants or needs and then giving them what they want. Everyone who has taken a basic course in marketing will tell you that. All your competitors are doing the same thing. When you see an unmet need or want where you think there is an opportunity you can be sure someone else is seeing or has already seen the same opportunity and is starting to act on it. The secret to not competing on price alone is to determine what your market wants and needs and then meet those needs in a way that your competition can’t or won’t want to be able to duplicate. Examples might be “trade secrets” in production that make you more efficient or finding a location that cannot be duplicated to provide more convenience for your customers. It might mean working non-traditional hours or making your place of business more attractive. In a world where a certain level of acceptable quality is a given and expected you should also look for ways to differentiate your product or service by adding value in other ways. For example the way your product or service is sold or displayed can make a major difference in a potential customers perception of the value of your product. Consider the following examples of different ways to sell a watch. In the first case you are going to purchase the watch in a “pre-bankruptcy discount store” You walk through the oil stained parking lot to the smudged glass door that sticks on the dirty carpet throw as you enter the store. There are dirty shopping carts with partially eaten food and already read fliers in them. You walk down a dirty aisle that has “slurpee” tracks on it. As you approach the counter you strain to look through dirty cracked glass and see the watch that you think you might like but you can’t find a sales associate to help you. What would you expect to pay for the watch? In the second example you are going to an “upscale jewelry store” on the upper east side of Manhattan. You approach the building by crossing a marble tiled entryway with the stores logo beautifully inlaid into the walkway. As you approach the store you are greeted with a smile and a friendly attendant opens the door for you. You walk down a sparkling high shine floor that reflects the light of the stores chandeliers past a series of oak or mahogany cabinets with crystal clear glass stocked full of beautiful merchandise. When you arrive at the counter with the watch you are interested in the sharply dressed attendant immediately helps you by placing the watch on a velvet tray and slowly “presents it” to you for your inspection. Keeping in mind that it is the same watch what would expect to pay for it now? How are you presenting your product or service? What action can you take to present it in a more favorable light? Are you getting the best possible price or is there and expectation that your product or service should be discounted because of how it is being presented? About the Author – Scott Francis is President of Topline Development LLC a Strategic Marketing Consulting Group that provides helps companies determine how they can make the most amount of money with the least amount of resources. To learn more about Topline Development LLC visit their web site at www.ToplineDevelopment.com or contact Scott directly at scott@toplinedevelopment.com. Back »