"But our competitor is $200 cheaper."
I hear this panic regularly.
Here's my answer: Good.
The Price Competition Trap
When you compete on price:
- Margins shrink
- Service suffers
- Quality drops
- Brand erodes
- Business dies
Someone can always go cheaper.
If price is your advantage, you have no advantage.
Who Actually Wins on Price
Massive operations with:
- Volume manufacturing
- Razor-thin margins
- Automated everything
- Venture capital backing
Is that you?
If not, stop trying to beat them at their game.
The Value Competition Alternative
What if you charged MORE than competitors?
"That's crazy. We'd lose all our customers."
Would you?
People buying $5,000 products aren't looking for the cheapest option.
They're looking for the best option.
Be that.
How to Compete on Value
1. Remarkable service
Answer the phone. Respond in hours, not days. Remember customers by name.
This alone justifies a premium.
2. Superior expertise
Know your products deeply. Advise customers properly. Be the expert they trust.
Expertise has value.
3. Risk elimination
Longer warranties. Better return policies. Installation support.
Remove every fear. That's worth paying for.
4. Experience
Unboxing. Delivery. Follow-up.
Make every touchpoint exceptional.
People pay for experiences.
5. Curation
Don't carry everything.
Carry only the best.
Be the store where "if they sell it, it's good."
The Premium Position
Here's a secret:
Some customers specifically avoid the cheapest option.
They assume cheap means low quality. They want the premium choice.
By being more expensive, you attract them.
The Pricing Experiment
Try this:
Raise your prices 10%.
Watch what happens.
Most stores find:
- Conversion rate drops slightly
- But revenue stays flat or increases
- And margin improves significantly
You might be underpriced.
The Long Game
Price competitors come and go.
Value competitors build lasting businesses.
Which do you want to be?