In our last post we discussed how much you should charge for your products and services and how to find the optimum price that will have you winning all of the time. This post comes from a question that we get with a little added on the end as in: “How To Beat Your Competition and lock them out!”
If you haven’t read out last post, please go back and read it now as it will help you to get the full picture of what we are discussing here. You do NOT want to build your business by always selling on the lowest price. If you do this you have nowhere to go but down. If your competition is bigger, stronger and wealthier, they will keep lowering prices until they put you out of business so don’t try to go this route. It would be far better to give more, do more and/or be more to your customers rather than lower your price. Again, please go back and read our last posts “How Much Should I Charge,” both part 1 and part 2.
Every business wants to beat their competition and we will discuss this here but we also want to add some very important information. Once you beat your competition, how do you keep them out? Many businesses won’t think twice about lowering their price to get back in with the customer – even if it means losing money. It won’t be enough to beat your competition; you will also need to keep them out – permanently!
After our last two posts you now know how to go out and win the business that you need to keep your business growing. Now that you have the customer we are going to be sure that you never get pushed out by a competitor with a lower price.
Ask your customer what things are causing them pain, whether that is in your industry and the products and services you provide or outside of your industry. Once you know this, find ways to take the pain away. Let’s use a basic example to illustrate this point:
If you are in the janitorial services business, you will no doubt have people that will complain because you missed something. If this happens enough times, the office manager will get tired of dealing with this and you will become a source of pain for them.
Go to your contact inside the building and ask them where you can leave a notebook in a public area that will always be in the same spot where the employees will have access to it. Also ask them to announce it to the employees and let them know the book is there for them to make note of things that need to be improved or were missed.
By doing this, the complaints stop going to the office manager (which will assure that you are not becoming a pain to them). When you or your employees come in to clean, the first thing your supervisor does is to check the book and do those things first. They then check off the items once they are completed and inspected (and only then). Now they can start their normal work for your customer.
Once you have done this, start looking around for other items like:
- Window Washing
- Carpet and Tile Cleaning
- Coffee Service
- Vending Machines
- Paper Products
- Hand Cleaning Solutions
- Anything else they may be buying or need
As you build a great relationship with your customer, offer to give them a price on these other items and do all you can to match or beat the price (read our last two posts for more on this).
As you take these other items on and you are successful with them, there is no way that your competition will be able to push you out because they don’t do all of these things and the hassle that your customer once felt but no longer has to deal with will keep you in their forever (provided you keep providing them top notch service). Plus your monthly billings are increasing and you are becoming more successful!
What about if you are selling computers or computer peripherals (printers, cables, etc.)? Offer the other products along with what you are selling now. If your customer has been buying computers from you, what about items such as:
- Ink and Toner
- Networking Gear (patch panels, hubs, routers, switches, etc.)?
- How about working a deal with a cable installer to get a lower price so you can add some on and offer that service as well?
Many customers that are buying computers and all that goes with them will also need:
- Large Screen Televisions
- Conference calling equipment
- Service Contracts
- And the list keeps going
I hope this is opening your mind up to all of the possibilities that are available. Please note that you do not have to be the company that does all of this in-house. Go out and make deals and become partners with those that do and get more business because of it.
Also, once you do partner with another company you can offer all of the same things to them so that your partner is also your customer and you continue this cycle of increasing revenue while locking out your competition.
If you would like help with this or any other business, sales, marketing, social media issues and more, contact us at:
Until our next post – we wish you all success!