Funny thing about customers – often they are willing to pay more if they are able to see, feel and understand the value they are paying for. Yes, many consumers do look at price first. But also see the curious case of a company known as Apple. Apple makes no bones about charging a premium for their products. In fact they have historically refused to sell any product at a “standard” margin.
If consumers were really price sensitive no one would own a Mac or Android. You can get free Android phones any day of the week on any carrier you choose. Similarly, a Mac has very little that you can also do on a PC.
Too often we believe we need to compete on cost because that’s the easy route. But sometimes it’s better to raise costs and insist on differentiation. But here’s the thing: you have to be willing to walk away from clients that want you to compete on cost. You can’t have it both ways. Competing at a higher price point means that you are limiting your market share.
Value is about doing something different. It’s about setting your own rules and not backing down. But you will have to have the fortitude to stand your ground when it means losing because of it. We all hate to lose, but losing the battle to win the war is its own nobility.