Tip of the Day: Compete With Quality

Author

Ford Commercial Vehicles

Release Date

Wednesday, August 19, 2015

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If you’re competing against the big guys—national-chain service providers, or online retailers—it’s going to be hard to win on price. In fact, you may not want to win if it means being the cheapest. But you can turn this into a fair fight and, as a small business owner, you’re uniquely qualified to come out on top: Instead of price, focus on the value that comes with quality local products and personalized service. And turn your community connections into lifetime customers that appreciate long-term value over short-term discounts.

Take automobiles, for example. In the short term, you keep cash in hand by purchasing the lowest-priced model. But that purchase comes with hidden expenses. A low-cost model will likely get fewer miles per gallon than a midrange or higher-end vehicle. Will you find yourself in the repair shop more than if you had purchased at a higher price point? In the end, buying low often comes with higher costs in the long run.

Use the opportunity to discuss price—and quality—with potential customers. Position yourself not as the cheapest provider, but as the best value. Build these points into the culture of your business:

Don’t lowball yourself: Customers will pay a little more for a product or service if they see the higher quality and trust you to deliver it. Use your website to tell that story: Highlight specific features or unique aspects of your product—or the skill and experience behind your service—and include testimonials from other customers who can attest to the quality you deliver. When you meet customers in person, don’t assume they see the quality for themselves—point it out to them. And don’t hesitate to provide an estimate that may cost a little more than competitors’. Take the time to explain why the estimate may be a little higher—it’s not the cheapest, but it is the best value.

Position yourself to be seen: Visibility, convenience and attentive service can go a long way toward establishing value. Make it easy for customers to purchase your products and services. For instance, ensure that your telephone number is listed correctly wherever it appears—and that calls are returned promptly. On your website, make sure that all contact emails or submission forms are monitored and answered. And if something goes wrong, deliver a convenient, quick fix.

Turn connections into leads: Today’s consumers care about the impact businesses have on their communities. As a small business owner, you can earn customers’ loyalty—even at higher price points—by highlighting your local connections, jobs creation and social responsibility. Remind customers that the money they spend with you stays in your community. If your business supports local causes, solicit a testimonial for your website. Local connections can even help generate leads, such as when you attend games for a local youth sports team you sponsor, or when you donate goods or services to charitable social functions. Customers will appreciate, and pay for, quality that contributes to their communities.

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