When I go to the grocery store, there are a few items I buy for which the generic version is just not acceptable. I understand that for many items, you can replace the name brand with the generic substitute, but for some things, you can’t.
My name is Keith, and I love Bounty. There. I said it. It IS the quicker picker upper, and, in my opinion, other paper towels don’t do the job as well. I buy Kleenex. It feels better on my nose. Heinz just tastes better. Charmin – enough said.
My point is that some things just represent higher quality. You can always pay less for something. Someone will always attempt to lower the price to undersell the existing market. That’s an easy strategy. The challenge is doing that while delivering quality that meets or exceeds the market.
Here’s a secret: If you’re going to lower price and reduce quality (a little or a lot), you better hope that what you’re selling isn’t critically important to your client. Clients will accept lower quality on products and services that are not that important to them, but the closer you get to delivering something that really has value to clients, the more they will expect the quality to meet or exceed the higher-priced model.
Yep, I value paper towels and facial tissue and ketchup and toilet paper – life’s basics. The reality is that most clients do too. So, if you’re going to be in the business of selling stuff to others for a profit – whether goods or services – you better understand what you’re delivering, the value it adds to your clients, the degree to which they will accept a lower quality substitute and the price point at which you can deliver it.
Clients are smart. They know that, in general, you get what you pay for. That being said, some things are worth paying a higher price. Are your products and services on that list?
PHOTO CREDIT: Flickr Creative Commons Swanksalot