One way to beat your competition is to charge less for a similar product or service. But you can also beat your competition when your price is higher. One of best ways to avoid price competition is to become a specialist in a narrowly defined targeted market.
RELATING IS MORE IMPORTANT THEN PRICING
I recently spoke with creator of a marketing program for new business owners. He could have confronted established competition and competed with a lower price. Instead he decided to target prospects in 2 types of businesses he had worked with before -- insurance sales and MLM marketing. He knew a lot about operation of each business and people who worked in them.
He created a separate web site for each type of business and customized content to appeal specifically to prospects in that business. The site for insurance sales people looked same as site for MLM marketers. But content was totally different.
His plan worked. Sales are running almost 50 percent ahead of projection ...even with a price that's 15 percent higher than similar programs. He built a successful business in a highly competitive market by becoming a specialist.
CUSTOMERS LIKE TO BUY FROM A SPECIALIST
People like to do business with a specialist who has a unique insight into their situation. They feel confident about getting what they expect from a product or service when it is proposed by somebody who understands them and their unique needs.
Most customers or clients will even pay a little more to buy from somebody who thinks like them. It's worth it to avoid risk of being disappointed because they bought from somebody who didn't know anything about their special situation.
YOU'LL SELL MORE AS A SPECIALIST
Targeting a niche market enables you to design your sales messages with great precision. You can cater to specifically defined interests of prospects and communicate with them in their own style. More people will buy when they feel you are talking directly to them about their individual needs.