1 THOUGHT:

I’ve always felt it’s best to have a perspective, then in turn understand the perspective of who’s across from you.

Like many of you I’ve been commoditized (spell check say that’s not a word but roll with it) at one point or another.

I feel it’s important to make your USP (Unique Selling Proposition) 100% clear, and more importantly valued and understood. If that fails to matter to your prospective buyer it leaves some big decisions for you as the provider of said product or service to make.

Having worked for and with some of the largest financial institutions and retailers worldwide over the last three decades, the growing number that are utilizing buying groups and buying via reverse auction, etc has grown immensely. The word “value” is becoming less important and has been increasingly marginalized. The short sighted approach of seeking the low cost provider to save monies is so misguided. What are the future costs? How long will the low cost product last; will the low cost service simply need to be redone by the company that was passed up to save money this particular calendar year, or for this particular earnings call?

Do those future costs still make the low cost provider a value? I’d guess more often than not the answer will be no (not really guessing by the way).

I, as mentioned, try to understand the perspective of other people and companies but I feel it’s time for some organizations to look past a quarters earnings and look even just as long as 1 to 2 years out. Not a big ask but a huge opportunity for these consumers to truly advance and save.

Steve Jobs, at Apple, has been viewed as a pioneer and leader not only in tech but also marketing over the years by so many. Is the iPhone the lowest cost phone hardware? No! Most of us have one in our pocket or next to us on our desk right now…may even be reading this on one of the more expensive Apple laptops rather than a fully capable and functioning low cost laptop from a notoriously low cost provider Walmart.

But wait “Jason” you just contradicted yourself when you hi-lited the most successful retailer of all time in WalMart. They are known as one of the most cost sensitive companies period and in turn sell to the most cost sensitive buyers.

I believe rather than contradicting myself, I actually am suggesting you dig deeper into your desired market goals and determine whether you are a commodity and need to be sold and offered at the lowest price or if you are unique and better and can support that with facts. If the latter is true of your product or offering I’m suggesting you evaluate your customer base, and realign your goals to match your audience rather than give the margin away competing against lesser offerings.

I was successful not being the low cost provider my entire career; was better, offered more, and the customers I have aligned with recognized they were getting a true value.

1 QUOTE:

” When you know how much your worth, you’ll stop giving people discounts.”

– Helen Keller

1 Question:

Own a business, are senior management at a business, or are simply an employee…are you selling yourself or offering your service or product short of its true value? What decisions can you make starting now to realign you with your customer base?

Be proud of what you do, what you make, and who you are!

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